Could deposit troubles boost residential lettings?
First-time buyers are spending years saving for deposits to buy, providing a possible boost to the residential lettings sector in the meantime.
According to new research from Santander Mortgages, almost a quarter of would-be homeowners think they will have to save for more than five years before they can purchase their own property.
On average, first-time buyers spend 3.3 years saving for a deposit. Only 11 per cent expect to accumulate enough money to make a purchase within a year.
To help them in their quest, some 28 per cent of would-be buyers have taken on a second job or are working overtime to boost their savings, while 27 per cent are planning to take out a loan.
"Saving for a deposit is no easy task, especially in today's financial climate, with many customers, especially in recent years, having to put down larger deposits to secure their mortgage," said Phil Cliff, director of Santander Mortgages.
With this in mind, residential lettings agents across the UK could continue to see strong demand for rented accommodation.
Recent research carried out by mortgage provider Paragon Group showed that almost half of landlords saw an increase in tenant demand during the first quarter of the year, with only five per cent experiencing a decline.
Tim Lambert, head of consulting at Ducalian said renting is seen by many as a more "sensible" option in the current economic climate.
"Now is a good time to become a landlord, as the rent demand is considerable," he added.
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