98% of tenants want to buy

Some 98% of registered tenants want to become a homeowner but only 12% are expecting to buy before the end of the year, the latest First Time Buyer Monitor from LSL has found.

Almost half (49%) are expecting to buy in the next five years, a significant increase from the start of the year. In December only a third (36%) of tenants expected to buy in the next five years.

And tenants currently unable to become first-time buyers named the inability to save for a deposit as the biggest stumbling block to homeownership.

More than half (46%) are unable to buy as they can’t save for a deposit, and a growing number of potential first-time buyers (19%) are concerned that rising costs like stamp duty will get in the way – up by a third from just 13% in December 2012.

Concerns over building a deposit are even more apparent in London and the South East where 55% of tenants can’t afford to buy because of high deposit requirements.

Transaction costs such as legal fees and stamp duty are also more of a concern to tenants in London and the South East, with over a quarter (27%) naming these costs as a key factor blocking them from purchasing property, compared to just 16% in the rest of the UK.

Worries about having enough income for repayments played a lesser role than in the rest of the UK, concerning just 8% of potential first-time buyers.

Pater Lawrence at Lawrence Rand said: “It is no surprise that a large number of tenants would like to become home owners. Renting has always been stepping stone toward home ownership for many although the present market has seen renting develop as a longer term position for many and a lifestyle choice for others.”