Call for a rent freeze because ‘landlords can afford it’
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Most tenants want to own – but know this won’t happen in 2023
12:03 AM, 28th February 2023, 3 years ago
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A survey has revealed that 83% of renters want to buy their own home but more than 75% believe that they won’t be able to do so in 2023.
Unsurprisingly, the main reason for 54% is an inability to save for a deposit.
And now the Finbri ‘UK Renters’ Report 2023′ also highlights that 32% of tenants say that mortgage rates are now too high and 23% are unable to obtain a mortgage.
Just 15% of tenants say they prefer to rent.
‘Driving up demand for rental properties’
The firm’s Stephen Clark said: “The UK economy and mortgage market volatility are driving up demand for rental properties.
“Due to the prolonged uncertainty in the market and its overall weaker position, first-time buyers are postponing entry into the market.
“Sales are likely to decline, but the rental market will keep expanding since lenders are having difficulty issuing mortgages and sellers are bailing out due to delays.”
He added: “Whilst over 50% of renters that want to buy have said they won’t be able to save enough for a deposit, there are other factors that are giving renters cause for concern.
“Energy costs, rent increases and concerns over the economic outlook are all contributing factors impacting renters.”
‘Demand for rental property is outstripping supply’
The report says that renters are struggling and demand for rental property is outstripping supply – which is pushing up rents.
Other reasons for not buying their own home include being unable to afford conveyancing fees for 15% and another 15% of tenants say they are waiting for interest rates to fall.
Being unable to pay Stamp Duty tax is an issue for 12%), not finding a suitable property for 10%) and 8% say they are waiting government-backed schemes to become available.
Worries about falling into negative equity is another reason for 7% of renters – and 11% say that they won’t buy because a ‘property price crash is imminent’.
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Member Since September 2019 - Comments: 251
3:03 PM, 28th February 2023, About 3 years ago
I’m certainly in this boat.
I’ve been saving, doing everything someone should to get on the housing ladder, but with price rises everywhere the increase in savings has been slowing and last month for the first time, we had to use some of those savings. What’s more worrying is that it was not for an unexpected situation, just basic day to day living.
It’s not even necessarily the deposit that is the issue, but merely the mortgage multiplier that the banks would give me. It’s just not enough to afford anything.
I do worry about increased costs across the board. I’ll continue using savings as long as I can, but once they are gone I do not know what my options will be.
Member Since September 2018 - Comments: 3511 - Articles: 5
10:27 PM, 1st March 2023, About 3 years ago
Reply to the comment left by The Forever Tenant at 28/02/2023 – 15:03
I feel for you I really do. I have no idea, if I was a FTB now what options I’d have either. I’d probably be still living with parents if I could just to save as much as possible towards a downpayment.
Everything is pitched to a bigger and bigger deposit these days just to mitigate the risk of lending over what the income shows is achievable. Not easy when savings are being used to actually live off now.
Waiting for interest rates to fall is false hope. If anything has been learnt over the last year is, just how prone these are to any market movement from external forces as well as internal. If anything best to plan for these to be high from now on – another factor that wont help people trying to get on the property ladder.
Maybe the only way is to offer to buy the rental property you are in now off the LL? It must be in an area you need to be in now for work/schools etc??
At the end of the day the LL may well be looking to get out of this craziness too – then there could be a deal to be agreed on conveyancing fees perhaps?
Trouble is for a long time owner who rents a property out (but bought at the right time) the CGT really really bites and its getting worse. No incentive to sell but to hang on – only stalling property availability…
There is no one size answer that fits all.