More than half of prospective borrowers would consider lodgers

Nick Cheek
Written By:
Nick Cheek

Around 52% of prospective buyers say that they would consider having a lodger to supplement their outgoings given the current economic climate.

According to research from Mortgage Advice Bureau (MAB), within that number, 17% say they definitely plan on having a lodger and 21% would consider a lodger to help cover the cost of household bills.

Around 18% said they would need to buy with a partner, 9% would need help of a family member and 7% plan on buying with a friend.

Only one in 10 think they could buy a property by themselves.

Buying with friends

The proportions of prospective homebuyers considering changing their plans rises to nearly three quarters of 25 to 34-year-olds.

Around a quarter say they would need to buy with a partner for increased deposit and incomes, 10% with a friend and a further 10% with a family member.

A fifth of aspiring homeowners at the early stage of the homebuying process believe they will need a guarantor, which falls to 9% who are nearer to completion.

Economic uncertainty, driven by high inflation, interest rates and rising mortgage rates, is a significant barrier for two in five homebuyers.

Nearly a third said the main challenge was saving for a deposit, 27% cited a slowdown in the housing market and a quarter pointed to being accepted for a mortgage.

Game changers

Ben Thompson, deputy CEO at MAB, said: “The difficult and volatile economy has significantly changed the game for prospective buyers. For 15% of this demographic, it means they have already delayed homeownership plans.

“As high inflation levels dig deeper into people’s finances, many will be finding it incredibly difficult to stash away funds for deposits and subsequent mortgage repayments – especially those seeking to buy alone.

“A good way to help generate some extra money to pay for bills or contribute to a mortgage is to consider getting a lodger. However, it is important to note that you should still ensure you’ll be able to meet your mortgage repayments each month, and be able to go without that extra cash in the event they move out.”