Half of renters write off homeownership

Half of people who do not already own their home expect they will never be able to buy, according to the latest research.

Financial concerns were overwhelmingly cited for this pessimism, with many predicting they will never be able to earn enough to own their own home.

The finding follows years of mounting concerns about the ability of first-time buyers to get on the housing ladder.

CreditExpert's quarterly personal credit index found 48 per cent of non-homeowners never expect to buy, rising to 55 per cent living in the more expensive south of England.

Pessimism appears to increase with age, with 59 per cent of 35 to 54-year-olds resigned to a lifetime of renting, compared to half of 18 to 34-year-olds.

The trend reflects falling consumer confidence in general, with consumer confidence now one point above its lowest-ever level after two consecutive quarters of falling confidence.

Darryl Bowman, director of CreditExpert, said: "People are feeling economic change in the wind and are becoming more financially careful. Whether you are trying to get onto the first rung of the housing ladder or are planning expensive home improvements, you should make sure that your credit report is in the best shape it can be.

"Lenders use your credit report as a major part of their decision-making processes – whether to give you a loan in the first place and on what terms. As lenders become increasingly cautious, it pays to use an online credit report monitoring service such as CreditExpert to make sure that a colder economic breeze does not freeze you out of the best deals."

Consumer pessimism has also resulted in greater unease at debt levels, with 11 per cent of borrowers uncomfortable with their debts, compared to seven per cent last quarter.

Despite growing unease, a quarter of borrowers admit their loans have increased over the past six months with just 17 per cent managing to reducing their borrowing.