A research conducted by GoCompare Mortgages has revealed that 31 per cent of tenants (families living in rental houses) in the UK feel they can never own a house in view of the price inflation.
The ARLA Propertymark, which released the research findings, expressed concern over the developments in the UK housing market, as many potential house-buyers were finding it difficult to climb the property ladder.
“Affordability and access to mortgage loans were key reasons why many Brits rent. Half of the tenants surveyed live in rented accommodation because they can't afford to buy their own home, 11% were renting because they were currently unable to obtain a mortgage. Just 14% of those renting were doing so out of preference,” ARLA said in a statement.
The research also revealed that more than a fifth (21 per cent) of the tenants think that the removal of mortgage interest tax relief on buy-to-let properties, which came into force in April 2017, will reduce the supply of rented properties in their area.
Some of the tenants surveyed were also concerned that they will face rent hikes as buy-to-let landlords pass on the higher costs. Around 6 per cent said that their landlord had already or will increase the rent as a direct result of the tax changes.
Matt Sanders from GoCompare Mortgages said, "Our research reveals that half of all tenants are in rental accommodation because they can't afford to buy their own home."