Tenants Are Putting Buying A House On Hold

One in three people who are renting in the UK have paused their house buying plans by remaining in rented accommodation longer than originally planned, new research reports.

The research suggests that in the private sector, 1.66 million tenants fall into the ‘frustrated first time buyer’ category and research suggests that this is partly due to 18% of people not

believing that they would be accepted for a mortgage and so, renting is their only option. A further 10% have struggled to raise a deposit and 5% have been hindered with securing a mortgage.

Many first time buyers face the challenge of paying rent while saving for a deposit and, despite making regular payments for their accommodation, private renters don’t see this reflected on their credit report unlike mortgage payers.

However despite this, the research also shows that a large amount of people are content renting in the long term, perhaps due to the flexibility or the good relationship with their landlord. A third of people are happy to continue to rent and have no plans to buy their own home in the next few years.

74% of people would like to see rental payments contribute to their credit report, the research found. This is most popular amongst people who are looking to buy in the next five years with 91% in this group recognising the importance of a good credit report and 83% would like to see rental payment data added to it.