Most Brits still renting despite more affordable deposits

The majority of British residents are continuing to live in rental properties despite first-time buyer affordability jumping to an eight-year high.

According to the Halifax First Time Buyer Review, the average deposit needed for a mortgage has sunk to 15 per cent of the house’s value, but this drop has failed to stop the number of first-time buyers dropping to its lowest level since 1974.

The Mail Online report that many would-be homeowners are still struggling to raise the initial sum for a mortgage because of high house prices and poor economic conditions. As such, many are instead searching for properties to rent whilst they continue to try and save for a home of their own.

The figures show that buy-to-let property owners can feel confident in the value of their investment even if economic conditions continue to go slightly against them.

Summing up the figures for propertycommunity.com, Halifax housing economist Martin Ellis said: “Housing affordability for those looking to get onto the property ladder for the first time has improved significantly over recent years, largely as a consequence of the decline in house prices since 2007.

“Nevertheless, conditions for potential first time buyers remain tough. Difficulties raising the necessary deposit and concerns over the economic climate are preventing many from entering the market.”