Approximately 5.3 million people believe they are unlikely to buy their own property by 2015, according to new research from Kensington. That figure rises to 74% for the 35 to 44-year-old age group, which is the average age to become a first-time buyer without parental help.
The mortgage lender is highlighting what it sees as the growing importance of the privately rented sector in a report that is being sent to politicians ahead of the Coalition Government’s so-called ‘Emergency Budget’ on 22 June 22.
Kensington believes the size and importance of the private rental sector means the Government has to think carefully about the potential impact of plans to increase Capital Gains Tax on the buy-to-let sector, which is crucial to the supply of privately rented accommodation.
Pessimism about home ownership in general is high – 90% of people surveyed say they are concerned it is becoming increasingly difficult for first-time buyers in the UK, and 68% say demand for private rental property will increase in the next five years.
Keith Street, head of Kensington, said: “With a growing population and difficult outlook for first-time buyers the strain on the private rental sector will only increase.