Monday 24 September 2018

'Forever renters' have given up on dreams of buying a home

Stock photo: GETTY
Stock photo: GETTY
Charlie Weston

Charlie Weston

A LARGE proportion of young people fear that they will never realise their dreams of owning their own homes.

These "forever renters" are being impeded by an inability to afford a mortgage and say they cannot save for a deposit.

These people are predominantly young, according to the latest Aviva Family Finance report.

They are being hit by surging rental costs. The average cost of renting has gone past €1,000 a month nationally.

One in four of those who aspire to own their home believe they will never be able to buy, the Aviva-commissioned research found.

And 40pc do not expect to be able to buy until 2028.

Property prices are rising at a rapid rate.

The survey was carried out by Red C among a nationally representative sample of 1,292 people.

Some nine out of 10 of respondents said they would prefer to own their own property rather than renting.

Not being able to afford to save for a deposit was cited as the main reason home ownership is unattainable for 68pc of the renters who would like to own a home.

And many of those also said they would not be able to afford to service a mortgage either, with 64pc of renters saying meeting the monthly home-loan repayments would be a problem.

People between the ages of 35 and 44 also reported that they are the most financially stressed.

Some four out of 10 of them say they are struggling to make ends meet, a rise of 11 percentage points since May last year.

More than two in five of those who rent say struggling financially.

This is up seven percentage points since May last year.

Most renters are between the age of 25 and 44. 

Just one in four of renters expect their disposable income to rise in the near term, down 6 points year on year.

Head of personal pensions and investments at Aviva Ann O’Keeffe, said the research shows a number of trends that could have a lasting socio-economic impact, particularly in relation to renters and home ownership. 

"For half of those who have yet to buy, home ownership has become a dearly held but distant aspiration rather than a plan."

She said this could be the beginnings of a long-term change in the pattern of home ownership in Ireland.

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