Home Ownership Not Top Priority For Tenants

News at Household | 25/02/2020

A new survey has revealed that, due to the spiralling costs associated with getting onto the property ladder, homeownership feels increasingly out of reach for the vast majority of British consumers. The results of the most recent ING International Survey found 79% of British respondents found it “increasingly difficult” for first-time property buyers to purchase property. However, 71% of respondents said it was best for people to own property than rent.

43% of respondents believe house prices will increase more in 2020 and 58% of respondents said the housing market was “on the wrong track”. One response which was interesting was the 82% of respondents who said they have never owned a home because they are prioritising on other goals. Some of the other goals cited in the response include raising a family, paying off existing debt, living in a more convenient location, funding travelling or hobbies. All these reasons were given before saving for a property deposit.

A lot of people are under financial and economic strain

There is no denying there is a considerable amount of pressure placed on people these days. A lot of people feel there is an economic strain, and it is easy to see why homeownership isn’t a top priority for many people. The benefits of homeownership are apparent, but it isn’t always possible for people to step on the property ladder.

Of the tenants who answered the survey, 8% said they have no intention of owning a home. The most common reason provided by tenants regarding not buying a home focuses on high prices, which was said by 80% of respondents. 71% of respondents cited their concerns over dealing with a significant burden and 58 % of respondents felt there were worries about what would happen if interest rates changed.

Who needs help stepping on to the property ladder?

39% of respondents who don’t own a home say they don’t expect to do at any point in the future. The tenants who feel they can buy a home in later life have said they expect to do so in later life.

Jessica Exton, Behavioural Scientist, ING, said: "Lots of us want to own our own home one day. Not only because it’s considered to be a smart financial decision, but because homeownership is an emotional and personal goal. But houses are expensive, and many perceive them as only becoming more so. Some are consequently taking longer to save their deposit and buying later in life. Given these extended timeframes, it’s not necessarily surprising that many are finding additional reasons to spend and save in the shorter term. Funding travel today, while planning to buy a home soon, for example."

If you are looking to make a move in the property market, make sure you get in touch with Household. We are pleased to say we have helped many local vendors and buyers. We are happy to arrange a property valuation for local vendors, and no matter what assistance you need, we are happy to provide it. Contact us today for help.