The latest Post Office Money Mortgages survey has found that there 20 million people currently renting a property in the country, with 45% of all prospective home buyers in the UK expecting to remain shut out of the property market for the foreseeable future.
The average age that people expect to be able to get on the property ladder has risen to 36 years old up from 35 last year (2014) suggesting that rising house prices and the slow upturn in the economy remain challenges for first-time buyers, the Post Office said.
The expectation that they will have to wait until their mid-30s is shared across most would-be buyers, with those in the East Midlands the most skeptical, fearing they will be 46 before buying a home of their own.
The survey reveals that raising a deposit is perceived as the biggest barrier to getting a foot on the property ladder. UK renters believe, on average, that it will take them eight and a half years to save enough for a deposit, with 10% expecting to wait for more than a decade. This has decreased from 10 years in 2012 and nine years in 2014.
However, 28% of prospective home buyers claim they will never be able to afford a deposit unless their circumstances dramatically change through a better paid job or cash windfall. Not being able to afford mortgage repayments (17 %) is also a key concern.
John Willcock, head of mortgages at Post Office Money, said: “The average age at which non-homeowners expect to get a foot on the property ladder has increased to 36 over the past year, which is a worrying trend. It is clear that there is still a long way to go to inspire confidence in the first time buyers’ market, with nine million feeling they won’t ever be able to buy their own property.
“The size of a deposit is clearly the biggest hurdle that people face, with only 31% expecting to be able to raise the money alone.”