A report has revealed that more than a quarter of home-renters who feel “trapped” in the rental system are aged 40 and above, and may become “OAP mortgagees” when they do finally purchase a home.
“Trapped” renters refers to tenants who would like to seek a conveyancing lawyer in London or elsewhere in the country to help them buy a home, but cannot afford to. The term accounts for about 55% of the total rented market in the UK according to a study conducted by property website Rightmove.
The survey gathered information from 4,430 people and the results revealed that 27% of those who claimed that they felt trapped are aged over 40 . Rightmove has stated that if people in this group choose to buy a home, they would either need to pay off their mortgage within a shorter amount of time or have to become an “OAP mortgagee” in later life.
Martin Shipside, Rightmove director, said, “Over half of those in rented accommodation would like to buy but can’t make the sums add up, and as a result are trapped. 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.”
The survey also revealed that more than half of tenants are expecting their rent to increase over the next twelve months due to the shortage of homes to rent. Two-fifths of those who admitted to feeling trapped claimed they expected they would still be renting in three years time.
Rightmove’s research shows that fewer people this year expect to start the residential conveyancing process in the next three years than last year, when 32% of renters felt the same way.