Over half of homeowners rent before buying a property

June 4, 2016 by Brendan O'Neill

Home owners

According to a survey conducted by Clydesdale and Yorkshire Banks, over half of all homeowners in the UK rented a home before they were able to buy a property.

The research discovered that 64% of homeowners faced challenges when they tried to buy their own property. One of the largest hurdles facing prospective homeowners is saving a sufficient deposit. According to the study, people are less likely to receive financial help if they are already renting, while 62% of those living with family are likely to receive assistance from family or friends.

The research also indicated that it was far tougher for people to save for a deposit once they were renting a property, as the average rent in the UK is £681.70 a month. A fifth of those living with parents before buying a home don’t pay any rent, with one third of those saving that money towards a deposit. The study also found that getting onto the property ladder was more stressful for those currently renting a property.

Another study, which was commissioned by Royal London, indicates that around five million renters don’t have any cover in place for paying rent if they are off work through illness for three months or more, even though it may become difficult to pay the rent.

Potential homeowners can talk to a mortgage adviser who is CeMAP trained, to see if there is any help available to make the house buying process a little easier.