Just over half of renters believe homeownership would be impossible without the help of financial incentives and homebuying support schemes.
This is according to a survey conducted by Barclays.
Despite this, awareness of the government-backed Shared Ownership initiative is relatively low. Some 31% haven’t heard of the scheme, with the figure even higher among 18–34-year-olds (39%).
However, those familiar with the scheme see the benefits. A third believe Shared Ownership offers a more affordable route to getting on the property ladder compared to a traditional mortgage, and one in five believe that these types of initiatives offer a solution for first-time buyers struggling to get on the housing ladder.
Some 22% of renters are currently saving for a house deposit, with this group aiming to accrue just over £30,000 (£30,347.40) in 4.8 years, on average, from the time they started saving.
To meet this target, over £500 per month (£526.86) would need to be saved, on average, not accounting for interest or inflation. However, renters are putting away less than half the monthly goal (£230.80 per month on average), suggesting the target timeline could be over-optimistic for many without a change in financial circumstances.
Across all age groups, nearly half of tenants believe it is more expensive to be a renter than a mortgage-payer, and renters are nearly three times more likely to say they struggle with their housing costs compared to homeowners (25% v 9%).
However, not all renters are looking to get onto the property ladder for the first time – 22% report having previously owned a home, including four in 10 ‘later-life’ renters over the age of 55.
This is perhaps because renters aged 55+ are more likely to say they prefer renting as it offers more flexibility for their current life stage (56% vs national average of 40%).
This article is taken from Landlord Today