This was an increase on the same survey conducted last year when 50 per cent admitted that they would struggle to find a viable mortgage or deposit.
David Toplas, CEO of Mill Group, said: “The research demonstrates how households are now restricted to either renting or buying a home outright, only after saving for many years for a deposit, which results in a lack of choice for those looking to take their first steps onto the property ladder. A change in attitude is required as there is a definite desire in the UK for a greater flexibility of tenure.”
There is strong evidence to suggest that many households would prefer more choice to the options currently available. The research across 1,000 25 to 40 years olds who are currently renting demonstrated that 61 per cent would consider co-investment as an alternative route to home ownership.
The research coincides with the publication of a new report: ‘Co-investment in Housing’, which analyses the current barriers to homeownership in the UK, and suggests that co-investment offers a realistic alternative to the traditional home-buying model.
The Co-investment model is particularly suited to first-time buyers, who struggle to attain the deposit required for a typical high street mortgage. Recent statistics from the Council of Mortgage Lenders have shown that the number of first-time buyer mortgages has dropped by 90% over the last few years, excluding many first-time buyers from any hope of homeownership.
Under Co-investment, a resident owner-occupier and an investment fund jointly own a dwelling. The share of the property owned by each party can vary from 5% to 75%, depending on mutual agreement. Co-investment also offers several benefits including access to new sources of liquidity and shared risk between the owner-occupier and investment fund.
David Toplas, CEO of Mill Group said: “We commissioned this report to seek an independent review of the impact co-investment might make to the housing market. The report highlights the impact co-investment can have not just on the consumer, but also looks at the benefits the private sector investors, mortgage lenders and public policy organisations can derive from it.”
“Co-investment offers a path into homeownership for the many potential buyers that are currently excluded from home ownership and can give assistance to those currently priced out of the market. At the same time, it can offer investors access to a market that has for the past 30 years outperformed many of the alternatives currently available. We look forward to taking forward our proposals in discussion with investors, the housing industry and policymakers.”
Have your say on this story using the comment section below