Almost all renters unable to buy a property, new findings reveal

Around 85% of tenants cannot afford to purchase their own home, according to research by investment firm Monta Capital.

New tenants

An overwhelming number of renters are unable to buy a property, with very few saying they are tenants out of choice.

And a fifth of tenants have been renting for more than 20 years, according to analysis by property investment management firm Monta Capital.

Cannot afford

Around 85% of renters have no option, and cannot afford to buy their own home, the research shows.

Monta Capital commissioned a survey of 1,586 UK renters to find out whether renting is a lifestyle choice or necessity.

The survey reveals that 24% of tenants have been renting for 6-10 years, 22% for 10-15 years, 13% for up to 20 years, and 20% for more than 20 years.

Most common

When renters are asked if they have any plans to buy, 43% say no. And by far the most common reason is that they can’t see themselves ever being able to afford it (70%).

Of the 57% who say they do have ownership aspirations, 19% say it will be up to 10 years before they think about doing so, and less than 60% (59%) believe they’ll actually be able to achieve home ownership by then.

Thomas Balashev - Monta Capital
Thomas Balashev, CEO, Monta Capital

Thomas Balashev, CEO of Monta Capital, says: “If the vast majority of people are renting through necessity, I believe that there is a significant burden and moral obligation to provide them with quality, nourishing homes.”

Renters mortgage

A new mortgage aimed at ‘trapped’ renters who cannot afford a deposit, is now offered by Skipton Building Society.

Skipton, which owns estate agency giant Connells and Countrywide, unveiled the deposit-free mortgage last year.

The mortgage is approved based on a tenant’s track record of paying rent.


One Comment

  1. Having looked through literally 100s of tenant applications over the years my advice to too many tenants would be to ditch subs to 4 TV channels you never watch costing £85 a month combined, forget the £45 month latest phone, you don’t need 2 take away coffees at £8 a day and you don’t need a newer car costing £400 a month.

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