Research conducted by the Department for Communities and Local Government has found that affordability is a much bigger barrier to home ownership now, than it was in 2008.
Figures were last compiled during the financial crisis, in 2008-09, with 56% of private renters stating that affordability was the biggest barrier to owning a house. The research in 2015-16 has found that this number has risen to 70%. Affordability has been cited for being the main barrier to buying a home by 65% of all renters.
According to the English Housing Survey, the most expensive form of securing a home was private renting, at an average cost of £184 per week. Having a mortgage costs an average of £159 a week, while renting from the local authority costs an average of £95 a week. Home owners spend 18% of household income paying the mortgage, while private renters utilise 35% of their income on rent.
More than half of those renting privately thought they would buy a property in the future, while just over a quarter of social renters expected to buy in the future. The research also indicated that the main reason for not applying for a mortgage, is that they didn’t think their deposit was sufficient. Almost half of renters thought this was the case.
Mortgage advisors study on a CeMAP training course so that they have the required knowledge to find the most suitable mortgage product, saving money where possible for home owners and first time buyers.
