Clydesdale identifies challenges facing renters in buying first home

New research from Clydesdale Bank has highlighted the challenges facing renters as they strive to become homeowners for the first time.

The Glasgow-based bank’s annual First Time Buyers research found that 64 per cent of aspiring homeowners rent a property before they pick up the keys to their very own home.

Saving a deposit is one of the biggest financial hurdles facing potential first time buyers and the survey found that renters are less likely to benefit from help from family, with only 41 per cent receiving any financial assistance, compared to 62 per cent of those who are living with their parents or family members.

Building up the necessary deposit is also challenging for those who are paying rent as the research revealed an average monthly rent in the UK of £681.70.

Of those who live with their parents before buying their own property, one in five (21 per cent) don’t pay rent with a third of these potential homebuyers putting this money towards their deposit instead.

However 52 per cent do pay a fixed amount every month to their family landlords while 22 per cent contribute towards food and bills and others simply pay what they can afford on a monthly basis.

The research also found that those in rented accommodation find getting on the property ladder more stressful as 28 per cent admit to putting themselves under pressure compared to just 16 per cent of those who are still living with their parents and are in less of a rush to flee the nest.

Steve Fletcher, head of customer banking networks at Clydesdale and Yorkshire Banks, said: “At Clydesdale and Yorkshire Banks we understand the many different challenges that aspiring homeowners can face when they are hoping to invest in their first property.

“Buying a first home is one of life’s most significant financial milestones and the Banks can work with the individual needs and circumstances of potential first time buyers to help make their dreams of becoming a homeowner a reality.”