Renters want to buy but struggle with costs – survey

Renters have a strong desire to buy a home for a better life, but many are stuck with rising rents and house prices, a survey reveals.

The West Brom Building Society survey found that 44% of tenants want to buy and enjoy a better quality of life.

However, escalating costs mean that many will remain renting.

Renters face challenges

The society’s chief customer officer, Alex Windle, said: “These findings paint a clear picture of the challenges renters are facing.

“It’s no surprise that high property prices, rising living costs and the changes in stamp duty, are making it difficult for people to save for a deposit.”

He adds: “But it’s encouraging to see so many renters determined to take that step towards buying a home.”

Struggle with expenses

The study of more than 2,000 renters nationwide highlights that nearly half want to buy to enjoy a more stable financial outlook (46%).

Others wanted better living standards (44%), and increased family security (42%).

However, 52% of respondents say steep property prices are the biggest obstacle to buying a home.

Also, 40% struggle with escalating everyday expenses that hinder deposit savings, and 25% point to higher mortgage rates as a deterrent.

That means a big chunk of tenants will continue living in the PRS for much longer than they anticipated.

The survey found that 14% have rented for 20 years and 10% between 16 and 20 years.

The data also shows that 22% of private renters are aged over 55.

Renters want to save

A fifth of renters say they allocate 30% to 40% of their monthly earnings to rent, and around one in seven dedicates up to 40% to 50% of their income to housing costs.

This financial pressure partly explains why saving for a home deposit is proving difficult for many.

Although nearly half (48%) have attempted to save for a deposit at some point, only 28% are actively setting money aside currently.

For 34%, other financial priorities like clearing debts or funding weddings take precedence.

Others find that saving isn’t always straightforward with 38% of those who began saving having to withdraw cash for essential expenses or significant purchases such as vehicles or holidays.