A survey of over 10,000 UK renters, conducted by SpareRoom, has revealed that nearly one in five (18%) tenants in the UK don’t ever expect to be able to purchase their own property. This figure has risen from 12% in 2011. Despite a steadily improving economic outlook, optimism among tenants appears to be in decline.
Nearly half (49%) think it will be at least 5 to 10 years before they can afford to buy their own property. Nearly a quarter (25%) think that a full decade is the minimum amount of time they will require to save before they’ll be ready.
Among older renters, expectations are the lowest. 49% of tenants over 40 said they never expect to make it onto the property ladder. Given that this group is at or near its maximum earning potential, with an income that is up to 17% higher than the UK average, their predictions for themselves could well be an accurate predictor of the future of home ownership.
With growing numbers of tenants remaining in the private rented sector, SpareRoom director Matt Huchinson believes that Britain is going to have to undergo a massive cultural change, saying, “like it or not, we are heading towards a European approach towards property, where so-called ‘lifestyle tenants’ are the norm. Given the British love-affair with property ownership, this is going to be a major cultural change. “