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19th October 2011

Third of Brits have given up on home ownership

The number of Brits seeking rental properties through residential lettings agents could rise after it was revealed that many are beginning to give up on ambitions to own a home.

According to a survey by moneysupermarket.com, the difficulty of securing a mortgage and raising the money for a deposit is putting off potential first-time buyers.

It says approximately six million British adults (31 per cent) now do not intend to buy a property at all.

Meanwhile, those who do still plan to purchase a property one day believe on average that they will be 38 years old before they have the resources to do so, rising to 43 for those living in London.

Clare Francis, mortgage spokesperson at moneysupermarket.com, said that the first-time buyer market is still reeling from the effects of the credit crunch, with mortgage lenders demanding higher deposits.

"It's easy to see why nearly a third of non-homeowners do not intend to step foot on the property ladder.

"House prices may have fallen in many areas but they are still high. This coupled with the need for such a high cash deposit is pushing many people out of the market."

These figures could explain a recent increase in tenant demand reported by owners of buy-to-let properties.

According to a report from mortgage provider Paragon Group published last month, almost half of landlords saw a rise in tenant demand during the first quarter of the year, compared to just five per cent who said demand had fallen.