Millions of over 70s trapped renting
Figures showed that 27% of those who feel “trapped” in the rental system, who want to own a house but cannot afford to, are aged over 40 and risk the burden of paying off a mortgage well into retirement.
The majority, 55% of the UK’s rental sector said they would like to buy a home but are unable to making them trapped renters.
Martin Shipside, director at Rightmove, said: “The momentum of the runaway rental train shows little sign of slowing.
New tenants are still looking to clamber aboard in their search and are finding a dwindling number of places to rent as existing tenants have limited exit opportunities and stay put.
“The rental journey is the only real option for many, and the majority seem resigned to having to pay more. It has to run out of steam soon as the failure of wages to keep pace with rising living costs increases the pressure on tenants’ disposable incomes.
Shipside said that over half of those in rented accommodation would like buy now but can’t make the sums add up and as a result were trapped.
He added: “The global economic woes that have left first-time buyer numbers at record lows will shatter the goals and aspirations of many as they face the reality of renting for far longer than they originally planned.”
“Trapped renters over the age of 40 could face the prospect of being an OAP mortgagee, or face difficulty getting a 25-year mortgage term if it takes them beyond lenders’ retirement age criteria.
“Currently the stock market offers the certainty of a stressful rollercoaster ride and safe cash investments deliver the certainty of below inflation returns.
“Understandably the solidity of bricks and mortar combined with high tenant demand and rising rents has growing appeal as a physical asset that could prove to be a better hedge against inflation.”