Renters ‘finding it even harder’ to save for house deposit
In a new survey, the number of tenants who actively saving for a home deposit has decreased significantly this year, because rising rental costs bother household budgets.
According to Barclays Property Insights, only 17 percent of the respondents in July are currently building a deposit, a sharp decrease in the beginning of the year at the beginning of the year.
The primary driver behind this struggle is about two -thirds (62 percent) of the reports in which they have experienced a rent increase this year or that they foresee a rent increase and directly affect their ability to save.
This financial pressure also reduces requests for hosting. Only 12 percent believe that they can accomplish in the next year, and on a five -year horizon, marginalized to 16 percent.
In addition, more than one -third (37 percent) can not buy a house in the existing leasing areas or in the desired places of future.
In spite of these difficulties, common strategies to accumulate savings include reducing optional expenditures, cutting holidays or obtaining additional income through a side hustle and bustle.
Approximately one quarter of the tenants (26 percent), the seven (15 percent) who felt the same about mortgages compared with the host, said they struggled to meet their monthly payments.
Almost half (45 percent) of the tenants, said they set their spending habits to ensure that they can continue to meet housing costs.
Many mortgage lenders have recently announced changes in lending criteria and potentially enabled some people to receive larger loans.
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The mortgage in Barclays said: “Many people dream to have a home one day, but our latest findings emphasize how our tenants find it even more difficult to save for a deposit while keeping up with increasing costs.
“More positively, we see that the preservatives still create strong habits and carefully think about the balance between entering the market with a lower deposit or trying to minimize monthly repayments in the longer term.”
In July, Barclays assigned the Opinium Research to conduct a survey of 2,000 people throughout England.
