A third of private renters face barriers to buying
A third of private renters spend longer waiting to get on the property ladder than planned, and have been forced to remain in rented accommodation, according to a survey by Experian.
This means there could be 1.65m frustrated tenants across the UK, who want to buy a home but are facing hurdles.
One in five private tenants don’t think they would be accepted for a mortgage so believe renting is their only option, while a tenth have struggled to save a deposit so have had to put their buying plans on hold. And 5% have had to prolong their time renting as they’ve been held up in securing a mortgage.
Credit score flaw
Despite making regular payments for their housing, private renters don’t see this reflected on their credit report in the same way mortgage payers do.
In response, and to help private renters to get a mortgage, access finance or prove their identity online, Experian has developed the Rental Exchange. It allows rental payment information to be submitted to Experian, which will help strengthen renters’ credit histories and ease their difficulties when they buy a home.
Spokesperson Jonathan Westley said: “Many would-be first-time buyers face the challenge of saving for a deposit on a home while paying rent each month. Yet the rent paid by tenants isn’t reflected on credit reports in the same way homeowners benefit from making regular mortgage payments. By adding this data through the Rental Exchange, people aiming to buy can build a stronger credit history to help them get a more competitive mortgage rate, while long-term renters can prove their identity when they apply for online services.”