Swelling of ‘generation rent’ means many won’t be homeowners until 40s, 50s or even pension age
Almost 15 per cent of renters think they may be picking up their pension before becoming homeowners, as the cost of living crisis continues to eat into savings.
With so-called ‘Generation Rent’ continuing to be impacted by soaring house prices that prevents them from getting onto the property ladder, a new survey commissioned for NatWest highlights that nearly half currently cannot afford to put down a deposit.
Alarmingly, 57 per cent of those polled think they will likely be in their forties before getting a home of their home, while more than 25 per cent think it will be by the time they’re in their 50s.
Shockingly, 13 per cent say they reckon it won’t be until they pick up their pension that they will get keys to a home.
The study published for NatWest’s bill-splitting app Housemate, also found that the cost of living crisis was a factor in 34 per cent of respondents’ inability to get a deposit together.
This comes as inflation hits double digits and interest rates have been raised to one per cent, placing pressure on homeowners and renters’ bills, and costs of living.
Increased friction between renters has also resulted from the decline in people becoming homeowners, with 16 per cent find it stressful living with other people, and 27 per cent have asked a landlord to intervene.
The NatWest app helps the increasing number of renters keep track of shared expenses to ease pressure on cohabiting.
“Renting with housemates can be a complicated business but splitting bills shouldn’t be part of the problem”, said Wendy Redshaw, chief digital information officer of Retail Banking at NatWest.
“With today’s renters potentially being tenants for longer than ever before – we want to help. Housemate is our free app that makes it easier to stay on top of shared household expenses and take the first steps towards owning your own home.”