Rightmove's Consumer Rental Forecast Finds 55% Of Renters 'Trapped' In System And Many Risk Becoming 'OAP Mortgagees'
More than a quarter of tenants who feel "trapped" in the rental system are aged over 40 and risk becoming "OAP mortgagees", a study has found.
Rightmove's Consumer Rental Forecast found that "trapped renters" - those who would like to buy but cannot afford to - make up the majority of the rental sector at 55%.
The survey of 4,430 people earlier this month found that 27% of those who feel trapped are aged over 40.
Rightmove said that if people in this group came to buy a house, they faced either trying to pay off their mortgage in a shorter time or becoming an "OAP mortgagee" later in life.
Martin Shipside, Rightmove director, said: "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."
More than half of tenants (53%) expect to see their rents go up in the next 12 months due to the shortage of supply.
Thirty-nine per cent of those who feel trapped in the rental system expect to still be renting in three years' time, Rightmove found. This figure is up from 32% who felt this way a year ago.
Mortgage lenders have been slashing their rates as the Bank of England's base rate remains at a historic 0.5% low, but those who want to get on the property ladder face difficulties such as job insecurity and raising a deposit.
Last week, a report found that rents in England and Wales reached a record high of £718 per month in September. LSL Property Services' Buy to Let Index shows the new figure surpassed the previous record high of £713 seen in August.