More than half (53 per cent) of renters could afford the average mortgage cost – but don’t have the wherewithal to raise the deposit.
With the average rental price £1,126 outside of London, according to Rightmove, and monthly mortgage payments calculated at £736, the need for large deposits appear to be the stumbling block.
And research of 1,000 adults who rent revealed 36 per cent also think further increases in house prices will impact their ability to save enough to buy, with 28 per cent writing off the notion entirely. While one in six (15 per cent) can’t see themselves getting on the property ladder unless they get a helping hand due to the cost-of-living crisis.
A spokesman from Shared Ownership Week, which commissioned the research:
“It’s been interesting to see people clearly feel confident they’d be able to take on a mortgage. And yet, despite that confidence, the ever-growing figures required for a deposit seem to be the stumbling block. As a result, this seems to be putting many off buying, thinking that it’s not a possibility which is a shame, but also not strictly true.”
It also emerged 23 per cent reckon the only way they’d be able to cobble the cash together for a deposit would be to move back in with their parents. While 34 per cent have tried to save for one in the past but never reached their goal. Half of those polled were saving for a deposit, managing to put aside an average of £304 a month, with nearly £6,300 tucked away in total.
But 34 per cent would likely need some financial assistance from their parents to raise the money they need for their first property. The study also revealed 63 per cent would likely consider a new build, with being able to move in straight away once it’s ready, it’s likely to be more energy efficient than an older property and it is a blank canvas seen as the main selling points.
And given the ongoing cost-of-living crisis, 88 per cent saw energy efficiency as being important when buying according to the OnePoll data. It also emerged half would consider shared ownership, while 28 per cent hadn’t thought of it as an option yet.
Having the option to buy in the future, it being an easier way onto the property ladder and lower deposits were the main benefits to it being considered by renting respondents.
A spokesman from Shared Ownership Week:
“Despite challenging economic times, the desire to get on the property ladder remains strong. And shared ownership provides a route for people to finally get a home of their own, without having to save quite as much, or pay as much monthly. Particularly during the cost-of-living crisis, we want to remind people those who rent that the door isn’t closed on owning your own property and it can be done.”
