A third more people aged 45 to 54 are renting due to inability to save for deposit or meet mortgage criteria
New research reveals there has been a sharp increase over the last few years in the number of older people unable to afford to buy a home.
Commissioned by Intus Lettings, the report found there has been a 15% increase in the number of people aged 35 to 54 renting a home rather than buying in the last three years.
In the survey of over 2,000 tenants, the majority of respondents stated they were unable to buy either due to the difficulty in saving a large enough deposit or because they were not able to meet their lender’s mortgage criteria.
Despite slower house price growth in recent years, the research suggests more households are still finding it hard to get onto the property ladder, with the data revealing the number of people aged 45 to 54 who are having to rent has increased by a third since 2016.
Additionally, almost one in five tenants aged 55+ do not expect they will ever be able to afford to buy, due to affordability pressures and difficulties securing a mortgage.
By comparison, the survey found just under half (43%) of younger renters aged 18 to 24 felt they could not afford a deposit, although those responding to the survey in this age bracket said they were only saving on average less than £50 per month for one.
Commenting on the findings, Hope McKendrick, Lettings Manager at Intus Lettings, said, “With the cost of rent rising faster than wages, it’s no surprise that an increasing number of people find themselves unable to save up for a deposit to buy a home well into their 40s, 50s and beyond.”
Towards the end of 2018, think tank Policy Exchange proposed that there needs to be a significant increase in the number of homes built for older homeowners and tenants.