While many people feel as though they will never own their own home, there is still a desire to own property.
A recent study by Paragon Bank indicates many people are keen to move from renting to homeownership. There is support available for first-time buyers, and as the desire to own property remains, it is likely the housing market will continue to be busy throughout 2021 and beyond.
Richard Rowntree, Paragon’s managing director of mortgages, said; “We spoke to nearly 2,000 tenants in the private rental sector across the country about their experiences of renting and the results confirmed what we suspected. The tenant base is diverse - from young couples finding their first home together, to families, to people in later life who may live on their own – but it’s one that sees the benefits of the tenure.”
Richard continued by saying; “Of course, the UK is a nation of homeowners and many tenants naturally aspire to own their own property, particularly those in the younger age brackets, but people are generally happy in their rented home, recognise that it suits their needs and, on the whole, enjoy a good relationship with their landlord.”
Other key findings from the study include:
- 72% of respondents in rental property would like to own property in the future
- Tenants in the age group of 25 to 34 have the largest desire to purchase property
- 88% of tenants in the 25 to 34 category want to own property in the property
- 70% of tenants in the 45 to 54 age group want to own property
- 50% of tenants aged between 55 and 64 want to own property
- Just 34% of tenants aged 65 or older want to purchase property
In information provided by UK Finance data, the average age of the first-time buyer in the United Kingdom in 2019 was 32 years old.
Their study also found that as people grow older, the ability or desire to save money weakens:
- 74% of respondents aged between 18 and 24 save regularly for a deposit
- 71% of people aged between 25 and 34 save regularly for a house deposit
- 58% of tenants aged between 35 and 44 year save regularly for a property deposit
- 45% of tenants aged between 45 and 54 save for a deposit
- 41% of people aged between 55 and 64 save for a deposit
- 43% of people aged 65 or over save to place a deposit on a property they wish to buy
Richard Rowntree said; “Our research shows a strong desire to buy amongst younger tenants who will typically use rented property as a starter home before stepping on the property ladder. This cohort also is more able to save for a deposit, making their aim of buying a home more attainable. As tenants reach their middle-aged years, the desire to own a home becomes less pronounced, but so does the ability to save for a property. These tenants will typically stay in the private rented sector for a longer period, maybe for the rest of their lives.”
If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters West Hampstead today for all your housing and letting needs.