The report, published as part of Rightmove’s Consumer Rental Forecast, said that over a quarter of tenants currently “trapped” in rented properties by budget constraints were over 40 years of age and were at great risk of becoming “OAP mortgagees”. It defined such people as “trapped renters” people who would like to obtain mortgages but were unable to afford one. The report said such people composed an overwhelming 55 per cent of the private rented sector in the UK. The poll, which was carried out earlier this month among 4,430 tenants, also revealed that 27 per cent of these “trapped renters” were over 40 years old and therefore, even if they were able to obtain mortgages in the next couple of years, would be either trying to repay their mortgage over a shorter period of time with larger amounts, or would be repaying their mortgage well into their pensionable years. The news is even more gloomy for tenants, as the report went on to point out that some 53 per cent of tenants believe that their rent will increase over the next year because of the supply shortage of available properties. Some 39 per cent of people “trapped” in rented accommodation expected themselves to still be renting by the end of 2014 compared to 32 per cent who felt this way in 2010’s poll. Job insecurity and the difficulty of getting enough money together for a deposit were cited as the main reasons for an inability to get a mortgage, despite the efforts made recently by the mortgage industry, which has been lowering mortgage rates with the assistance of the Bank of England’s historically low 0.5 per cent base rate.
Trapped Renters’ Unable to Get a Mortgage
Published on 7 March 2020
10 Minutes
