Deposits and affordability are the main barriers to homeownership, affecting seven in 10 renters who would like to own a home.
During a webinar hosted by Mortgage Introducer, Stefan Valentin Rusu, head of business development at Proportunity, revealed that nine million renters would like to own a home.
Robyn Hall, publishing editor of Mortgage Introducer ran the exclusive webinar, titled ‘Proportunity Knocks’.
Rusu explained that the total number of renters who would like to own a property equates to 85% of all renters in the UK.
Deposits and affordability are the main barriers to homeownership, affecting seven in 10 renters who would like to own a home.
In addition, Rusu noted that there are 200,000 fewer first-time buyers per year since 2001.
Rusu said: “There is no real end in sight. Banks need large deposits to migrate house price risk.
“Regulations and capital requirements deter banks from low deposit lending.
“Help to Buy serves only 10% of FTBs and ends in 2023.
“COVID-19 has made lenders even more risk adverse; as a result, banks are asking FHBs for 3x larger deposits.”
Rusu went on to explain that Proportunity offers machine learning and time series forecasting technology that can detect areas of rapid growth before they occur.
It analyses data from 40 million residential transactions and identifies datasets on 150 property characteristics as well as micro-economic area indicators.
