Tenants give up on homeownership as they get older

27 November 2020 | General

Tenants’ desire to own a property and save for a deposit falls from the age of 35, research from Paragon Bank has revealed.

Some 72% of those in rented accommodation would like to own a property in the future.

Those in the 25-34 age category have the greatest desire to buy a home, with 88% of tenants in this group saying they want to own a property in the future. Meanwhile 71% are saving for a deposit.

Among 45-54-year-olds only 70% still want to own a property, while just 45% save towards a deposit.

Richard Rowntree, managing director of mortgages at Paragon Bank, said: “Our research shows a strong desire to buy amongst younger tenants who will typically use rented property as a starter home before stepping on the property ladder. This cohort also is more able to save for a deposit, making their aim of buying a home more attainable.

“As tenants reach their middle-aged years, the desire to own a home becomes less pronounced, but so does the ability to save for a property. These tenants will typically stay in the private rented sector for a longer period, maybe for the rest of their lives.”

The average age of a first-time buyer in 2019 was 32, UK Finance data shows.

This post has originally been featured in Property Wire.