Almost one third of current UK renters believe that they will never be in a position to afford their own property, according to a new survey.
The research, carried out by Bilendi on behalf of GoCompare Mortgages, discovered that 31% of tenants in rented accommodation cannot imagine ever purchasing their own property.
With property prices continuing to rise in many parts of the UK, raising a deposit is often seen as the largest barrier to getting on the housing ladder.
Questioning 2,000 renters, the survey found that 21% of tenants feel that the removal of mortgage interest tax relief on buy-to-let properties will cut the supply of rental property in their region.
In addition, other tenants expressed concerns over possible rent increases, as buy-to-let landlords pass on higher costs. 6% noted that their landlord had already or is planning to increase rents as a direct consequence of tax changes.
Matt Sanders of GoCompare Mortgages, observed: ‘Our research reveals that half of all tenants are in rental accommodation because they can’t afford to buy their own home. It now looks like many have given up all hope of ever owning a home and, for some, the changes to buy-to-let regulations are likely to make renting more expensive. In turn, that makes saving for a mortgage even harder.’
‘April saw profound changes to the taxation of buy-to-let properties which will reduce landlords’ profits and our survey suggests that there is a real concern among tenants that to protect their profits, over time some landlords will increase rents while others may sell-up – reducing the stock of available private rented homes,’ he added.