The majority of youngsters in Scotland will be forced to rent a house by the end of the 2020 as they cannot apply for a mortgage, as per the new analysis arranged for ministers.
The Scottish Executive published a study and found the amount of people under 35 years renting from a private landlord has quickly increased from 13 % in year 1999 to 31 %, 10 years later.
By year 2014 this group will surpass the amount of young Scots having a mortgage and by year 2020 more than half of below35 years households will be renting in the private sector.
The paper said an “important barrier” is the high price of deposits needed to qualify a mortgage, with building societies and bank typically asking 15% of the house price up front.
Young Scots trying to save for a deposit suffer an additional load as landlords are taking benefit of the circumstances by rising rents, with the typical bill now back at the similar level as before the credit crunch.
But, despite the current collapse and recession in the property market, the analysis concluded that young Scots’ wish to buy their own houses is now stronger than ever.
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