Just 45% of renters have revealed that owning a home is a life goal of theirs, according to research collected by Aldermore Bank.
Just 45% of renters have revealed that owning a home is a life goal of theirs, according to research collected by Aldermore Bank.
The data outlined that only 26% are actively saving for a deposit currently.
As a result of the pandemic, renters have noted that they are more likely to consider homeownership, with 26% saying lockdown has made them more motivated to buy.
According to renters, the greatest barrier to homeownership is a deposit, at 30%.
Affordable prices at 17% followed, and high rent costs at 13%.
Over a quarter (28%) of private renters say credit history is a big concern, with 38% looking to actively improve their credit score to increase their chances of securing a mortgage.
The main credit issues of private renters include having an overdraft at 26%, followed by credit card debt at 25%, and gaps in employment at 21%.
Furthermore, the COVID-19 pandemic has seen 22% of renters placed on furlough or who have lost employment since the outbreak.
In addition, 12% of renters have missed or been late on rent payments this year, and 14% said they have had to use their savings to get by day-to-day.
Overall, the average rent cost in the UK among those surveyed was £648 a month.
Aldermore Bank surveyed 2,000 UK private renters in order to gather the data.
Jon Cooper, head of mortgage distribution at Aldermore, said: “The experience of lockdown has focused renters’ minds to work towards owning a home more than ever before, but it is clear from the data that renters see credit issues in their past as a problem for them.
“And with many dealing with furlough and reduced incomes recently, it is understandable they may feel the dream of home ownership is far from reach.
“However, the challenges they face are not as large a barrier to buying a home as it may have been in the past.
“Specialist lenders, like Aldermore, consider borrowers with credit issues, including debt and CCJs, alongside those experiencing furlough, so options are open as we begin the New Year for renters that previously may have been turned away from high street lenders.”
Kevin Roberts, director of Legal & General Mortgage Club, added: “The coronavirus crisis has undoubtably presented different challenges for people wishing to move onto and up the property ladder.
“Those with homeownership aspirations still have many mortgage options available to them and should not feel locked out of the market because of previous credit marks, or existing debts.
“The key to success for these people is to seek professional mortgage advice.
“Working with an independent mortgage adviser can be especially useful to aspiring mortgage borrowers, helping them understand their full range of options, such as specialist lenders like Aldermore.”
