Trapped renters are described as those who would like to be able to buy a property but cannot afford to, trapped renters currently account for 55% of the rental market.
4,430 people were surveyed by the estate agents and 27% of those questioned were over 40 years old and felt trapped in the system. If and when they did get on the property ladder they faced either a higher mortgage to be paid off over a shorter length of time than the standard 25 years, or becoming ‘OAP mortgagees’.
Martin Shipside, a director at Rightmove, 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.
“Trapped renters over the age of 40 could face the prospect of being an OAP mortgagee, or face difficulty getting a 25-year mortgage term if it takes them beyond lenders’ retirement age criteria.”
Over half the tenants questioned said that they expected their rents to go up over the next year. 39% of those who felt trapped in the rental market admitted that they expected to still be in rented accommodation in three years’ time, whereas only 32% of people surveyed last year felt this.
A report released last week showed that that rents in England and Wales had reached a record average high of £718 per month in September. There had also been an increase of buy-to-let mortgages issued as landlords cashed in on the boom of rental prices.
The number of properties rented privately has also increased by over a million in less than ten years, from 2.1 million in 2001 to 3.4 million in 2010.
A report published by the insurance giants Aviva in 2010, showed that 10% of homeowners over the age 75 are still paying off their mortgages, with the average outstanding balance being £72,500.
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