With raising rates and high inflation, many renters are putting off their buying plans until property becomes more affordable, according to research from The Mortgage Lender (TML).
Almost one in five (19%) said that high mortgage rates meant they could not afford to buy and had put their plans on hold completely, while 12% said that they would continue renting until prices came down.
One in 10 (10%) were waiting for rates to fall before moving ahead with their plans.
Similarly, 9% agreed that there was no point looking to buy until rates come down, and 6% were waiting to see the Bank of England’s next base rate decision before making a decision.
Despite this, 6% were progressing with their buying plans, but having to make significant compromises in order to do so.
A quarter of those still planning to buy were buying away from traditional commuter towns, and 32% had to move further from the city centre.
Likewise, 16% were buying in an area with cheaper living costs.
One in five (21%) were buying a cheaper property that needed more renovation work, and 12% were looking to buy smaller properties.
Steve Griffiths, chief commercial officer at TML, said: “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.
“This really highlights just how vital it is to speak to a broker early about your property ambitions. They can help breakdown how much you can afford, as well as any other available options.”
He added: “If it’s not the right time to buy now but you plan to in the future, make sure you are still working towards becoming ‘mortgage ready’.
“This will ensure when the time is right you are prepared to take that next step.
“Even in challenging times, potential buyers should remember that there are lenders that can support them, and a broker will be key in being able to help find the best deals.”
