Nearly a third of renters do not believe they will ever be able to afford to buy their own home, according to a new survey.
With property prices continuing to increase across many parts of the country, raising a deposit is often seen as the biggest barrier to getting a foot on the housing ladder.
The research, carried out by Bilendi on behalf of GoCompare Mortgages, found that 31% of tenants in rented accommodation cannot imagine ever owning their own home.
The findings from the study, which polled 2,000 people currently renting property in the UK, also revealed that 21% of renters think that the removal of mortgage interest tax relief on buy-to-let properties, which came into force in April 2017, will reduce the supply of rented properties in their area.
Some of the tenants surveyed were also concerned that they will face rent increases as buy-to-let landlords pass on the higher costs, with 6% saying that their landlord had already or will increase the rent as a direct result of the tax changes.
Matt Sanders from GoCompare Mortgages said: “Our research reveals that half of all tenants are in rental accommodation because they can’t afford to buy their own home.
“It now looks like many have given up all hope of ever owning a home and, for some, the changes to buy-to-let regulations are likely to make renting more expensive. In turn, that makes saving for a mortgage even harder.
“April saw profound changes to the taxation of buy-to-let properties which will reduce landlords’ profits and our survey suggests that there is a real concern among tenants that to protect their profits, over time some landlords will increase rents while others may sell-up – reducing the stock of available private rented homes.”
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