A significant proportion of those renting a home would like to buy it from their landlord if circumstances allowed, new research by Gradual Homeownership provider Wayhome shows.
In a national survey of 4,002 people, carried out by Opinium, 42% of tenants said they would like to buy their current rental home, if it were feasible. This rises to 45% of private renters compared to 38% of social tenants.
Interest peaks between the ages of 25 and 34, with more than half of tenants keen to buy the home they’re currently living in. This compares to just under one-in-three of those aged between 65 and 74 (32%), the age group least motivated to buy out their landlord.
Regionally, London sees the highest proportion of tenants keen to buy their current home at 53%. This is followed by those in Yorkshire and Humberside (46%) and those in the South East of England (44%). Those in the North East (30%) are least likely to want to buy their home.
There are several factors that drive the desire of tenants to buy out their landlord, with the home’s location topping the list (51%). Half (50%) say it’s because they ‘love’ the home and 38% say it’s because they don’t want the hassle of moving.
Top reasons why tenants want to buy the home they currently rent:
Good location | 51% |
Love the property | 50% |
Want to avoid the hassle of moving | 38% |
Spent money furnishing the property | 36% |
Close to family/friends | 35% |
The property suits my needs | 21% |
Meanwhile, a quarter of homeowners (26%) say they would have considered buying the last home they rented if it would have been possible at the time.
Wayhome says in reality, most UK tenants wanting to buy the property they rent in today’s market face tough challenges. When applying for a mortgage, a first-time buyer will be approved for 3.55 times their gross household income1. When the average UK income of £47,662 is considered2, it can leave those buying on their own with a mortgage worth as little as £169,200.
Even if their landlord were happy to sell, the strict lending criteria enforced by the high street banks severely limits their chances of securing a mortgage sizeable enough to buy the property.
Wayhome, which could help tenants buy their home from a willing landlord, warns that the property market needs to adapt to enable more people to get onto the housing ladder.
Chief executive officer Nigel Purves comments: “It is clear from this research that renters in the UK want to have more of a stake in their home. But with prices going up, mortgage affordability becomes more constrained than ever, which makes getting on the ladder an increasingly distant dream.”
