With raising rates and high inflation dominating the headlines over the past year, many renters are putting off their buying plans until property becomes more affordable, according to the latest research from The Mortgage Lender (TML).
Almost one in five (19%) renters say that high mortgage rates mean they can’t afford to buy now and have put plans on hold completely.
TML’s research also shows that just 6% have said that they’re progressing with their home buying plans, though they’re having to make significant compromises in order to do so.
A quarter of those still planning to buy say that they’re now buying away from traditional commuter towns, and 32% have had to move further from the city centre. Likewise, 16% are buying in an area with cheaper living costs to combat higher costs.
Others are having to reconsider the properties themselves, with one in five (21%) saying that they’re buying a cheaper property that needs more renovation work, and 12% are looking to buy smaller properties instead.
TML chief commercial officer Steve Griffiths comments: “The journey to buying a property can be a long one, and it can easily be complicated by the ebbs and flows of the housing market, particularly when we consider the current landscape.
“Although being adaptable and regularly checking in on the base rate will serve renters well in the long term, it’s understandable that so many are feeling frustrated by their options”.