Does buying your own home feel like mission impossible?
A significant 31% of tenants currently living in rented accommodation cannot imagine ever owning their own home, according to research commissioned by GoCompare Mortgages.
Plus many of them also believe it’s becoming more difficult and expensive to rent.
The price comparison service found that over 21% of renters think that the removal of mortgage interest tax relief on buy-to-let properties, which came into force in April 2017, will reduce the supply of rented properties in their area.
Worryingly, 6% added that their landlord had already or will increase the rent as a direct result of the tax changes.
Can’t afford to buy
A lack of affordability and access to mortgage loans were the key reasons given as to why many Brits rent. Half of the tenants surveyed live in rented accommodation because they can’t afford to buy their own home, 11% because they were unable to get a mortgage, and only 14% were doing so out of preference.
The survey also looked at the profiles of people in rented accommodation. It found that more women (57%) than men (43%) were tenants; 39% were single households, 28% were families with children and 23% were couples. One in 10 share their home with flat or housemates.
Matt Sanders, spokesperson for GoCompare Mortgages, said: “Our research reveals that half of all tenants are in rental accommodation because they can’t afford to buy their own home. It now looks like many have given up all hope of ever owning a home and, for some, the changes to buy-to-let regulations are likely to make renting more expensive. In turn, that makes saving for a mortgage even harder.
“April saw profound changes to the taxation of buy-to-let properties which will reduce landlords’ profits and our survey suggests that there is a real concern among tenants that to protect their profits, over time some landlords will increase rents while others may sell-up – reducing the stock of available private rented homes.”