Over a quarter of tenants (27%) believe they will buy at some point in the future, but cannot pinpoint when.
However the aspiration gap is widening. The proportion of tenants who think they will never be able to afford to buy has risen to 14% in April 2014, up from 10% in February.
Lack of a cash deposit remains the biggest obstacle to homeownership for prospective buyers, with 44% of tenants reporting that saving a deposit was a factor prohibiting them from buying this April. The second most common constraint preventing tenants buying was the high transactional costs like stamp duty and legal fees (16%).
Only 10% of tenants say they are worried an interest rate rise will push up mortgage repayments in April, down from 13% in February 2014. Other concerns included insufficient income to support a mortgage (15%), possibilities of future unemployment (7%), falling house prices (4%) and decreasing income (4%).
David Brown, commercial director of LSL Property Services, said:
“Saving for a deposit remains the number one challenge preventing many prospective home-owners from getting on the ladder – even with Help to Buy in position. The scheme is still a keystone in the recovery of the first-time buyer market. Some areas of the country are still limping out of the recession slump. Buyers in these areas are still waiting to feel the effects of the recovery in their wallets. In the meantime, while prices continue to rise, they need help in order to be able to get onto the housing ladder.”
