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Why almost half of renters think they’ll never buy

With the average house price now higher than ever, millions are facing up to the idea they’ll never be able to afford their own home.

There are 20 million renters in the UK right now, yet 45% - around nine million – don’t believe they’ll ever be able to buy. The findings, part of research by Post Office Money, also found the average age people expect to get on the housing ladder is 36 years old.

The biggest barrier to buying a home is the deposit. One in four renters revealed they’d only be able to save enough if they had a cash windfall or a big pay rise. The size of mortgage repayments was also a deterrent for one in five renters.

How long do people think they need to save for a deposit?

The survey found people expect to be saving for eight and a half years.

Reveal the answer Hide answer

A deposit isn’t the only cost you need to consider

Though the focus for those that do want to buy is the deposit, there are other upfront costs which can cause problems if you don’t factor them into your savings.

Any home which costs more than £125,000 will be charged a tax called Stamp Duty.

Buyers will also face fees from their solicitors and mortgage lenders. These have different names but look for surveyor’s fees, booking fees, arrangement fees, completion fees, valuation fees and electronic transfer fees.

It’s important to factor in extras like moving costs, furniture and maintenance too.

To ensure you have enough money, work out all your expenses with our simple Budget Planner.

Monthly repayments can be reduced

For those worried about high costs, extending the length of the mortgage from the traditional 25 years, will lower the monthly repayment. However, this will mean over time more interest is charged, so more is spent overall.

The more paid upfront in a deposit, the better chance buyers have of getting a lower rate, which also brings down the monthly repayment size.

Buying isn’t for everyone

However, some people surveyed didn’t want to buy, with one in ten renters enjoying the freedom of being able to move when they wanted.

What do you think?

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  • Glenville J Owen / 30 March 2016

    Our small country is to crowded for the demands placed upon it. We seem to be rapidly running short of living, food production, and recreation space etc. Britain needs a smaller and a more stable population for the sake of all who live here.

  • Emily / 23 March 2016

    I think the current housing situation was disgusting, there was once a time when you could come out of university to a full time job and afford to buy a house on a years wage, now I'm leaving uni with worries about even finding a job never mind being able to afford getting on the housing market when I'm paying £9,000 tuition fees? What am I paying for?

  • M / 14 March 2016

    It`s nothing new

  • Dean / 13 February 2016

    We pay £450 a month for our housing assosiation home. We can buy it for £40,000 but it is the deposit which is the main thing. We can more than afford the mortgage as it is cheaper than what we pay now. Why dont they do 100% mortgages again and if you default on it then you have to put a 15% deposit the next time you apply with more interest rates as a penalty for your first failed mortgage

  • vicky heywood / 20 January 2016

    After two failed relationships I'm too old to buy,I would love to buy then my family would benefit but renting a home gives you more flexablity as you can move anywhere,the trouble is I'm disabled and the only houses left to rent tend to be in bad areas as private landlords don't want people on benefits.

  • C Alder / 13 January 2016

    I've just recently separated from my husband and we have sold the family home as my two sons are now 19 and 17. I bought my first house when I was 19 and am now 49. I have always paid my mortgage and have an excellent credit score and a sizable deposit. However, as I am self employed I now have zero chance of getting a mortgage and am now renting at twice the monthly cost of my previous mortgage. i see no chance for me to ever buy my own home again due to the disappearance of self cert mortgages and the tightening of lending requirements and worry about the ever increasing costs of rent and the lack of security of tenure as I get older. Banks have forgotten why they are in business.

  • Tim Wilsdon / 11 January 2016

    We live in a country where our society expects everyone to buy a house selling us a dream ? Most of Europe rent most of there life. I feel its a con making a fortune for the banks lenders. We need social housing badly millions of ppl in this country need a home that they can live in at affordable rent.The dogmatic policy of house oownership has to stop.

  • Si / 9 January 2016

    I strongly believe that people with issues in raising funds and meeting criteria for mortgages should be given an opportunity. With rental often twice mortgage rates once they have made this step costs are manageable. If persons can prove that for 24-36 months that they can manage rent with no arrears then they should be allowed to get a mortgage with all costs included in this. (Costs added to the mortgage loan)
    In this day and age credit reports can often be deceiving and people can prioritise a housing bill to make payments.

  • Paul / 2 January 2016

    I'd never ever rent. Wait a year or so! No chsnce Id pay someone else's mortgage for them!

  • Jude / 22 September 2015

    I've always wanted to buy but living in Devon there has never been an opportunity because of very high house prices. Something needs to be done to ensure the right people get the lowest priced housing instead of it going to greedy landlord who do the bare minimum. Honiton is second to Plymouth for the worst renting conditions I.e mould, expensive storage heating ect. It's not exceptable!!!