Some 44% of renters in the UK believe they will never own their own home with not being able to afford a deposit the most common reason for not getting on the listing ladder.
Just 2% of renters plan on getting on the listing ladder this year, according to an independent survey for construction and regeneration company Keepmoat.
The average house price in England and Wales now stands at £178,000, according to the latest Land Registry figures, although significant regional variations exist. The average price of listing in the capital is currently £462,799.
Despite houses in the North generally being more affordable, non-homeowners in Liverpool at 62% were the most likely to say they never expect to purchase a listing. This was followed by 60% in both Newcastle and Glasgow and 41% in London.
Not being able to afford a deposit was by far the most common reason for not getting on the listing ladder, cited by 56% of respondents. The pressure of saving a deposit was also the top concern for those hoping to buy a home at 58%, with 61% of this group saying they will be saving their own deposit.
Some 38% of home owners polled said it took between two and five years to save for a deposit although it took 13% of those polled up to 10 years to save their deposit.
The research also suggests low awareness of the government’s Help to Buy scheme, an initiative that helps people take their first steps on the listing ladder. Less than one in three prospective buyers polled said they will be using the scheme, with 38% claiming they don’t know what the scheme is.
‘It’s clear that the amount of money first time buyers need to raise for a deposit continues to stop many from getting on the listing ladder. However, we were surprised that the results show Londoners are more confident about owning a home than those in other cities, particularly in the North,’ said Dave Sheridan, chief executive of Keepmoat.
‘There is plenty of assistance available for buyers in the form of the Help to Buy scheme and help is available when saving for a deposit with the Help to Buy ISA,’ he added.
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Source: Property News Spain