Many non-traditional workers find it difficult to buy homes due to their employment status.
- Research by The Mortgage Lender shows 50% of non-traditional workers face home-buying challenges.
- Gig economy workers feel the most impact, with 70% affected by their employment status.
- Fluctuating earnings and affordability are significant barriers to homeownership.
- Some workers consider moving abroad as a solution to homeownership challenges in the UK.
Non-traditional workers are encountering substantial difficulties when it comes to homeownership, largely due to their employment status. According to a recent study by The Mortgage Lender, half of these workers have experienced negative impacts on their ability to purchase a property.
Those in the gig economy are particularly affected, with a notable 70% reporting that their employment status hampers their home-buying ambitions. Contractors and zero-hour contract workers also face similar issues, with 68% and 60% respectively sharing this sentiment. Freelancers and self-employed individuals are not exempt, though they report slightly less impact than others in this group.
The primary challenge for these workers stems from fluctuating earnings, which can create uncertainties in their financial situation. About 20% of those affected attribute their difficulties in purchasing property to inconsistent income. This uncertainty often forces individuals to rent for longer periods than desired, with 15% expressing frustration over having to delay their homeownership dreams.
In some cases, the challenges are overwhelming enough that 17% of the workers feel compelled to consider abandoning their goal of owning a home altogether. The ability to obtain a mortgage is a major concern, with 17% worried about being unable to secure one, and 4% fearing they may not qualify to remortgage their existing properties.
Affordability remains another significant hurdle. 13% of the surveyed workers are worried about the rising costs associated with moving. In extreme cases, some have even contemplated relocating abroad in search of more favourable conditions for homeownership, with 13% considering this drastic step.
Sara Palmer, a distribution director at The Mortgage Lender, advocates for a customised approach to lending criteria that considers the unique circumstances of non-traditional workers. She emphasises the importance of assessing applicants fairly, noting that many non-traditional earners have incomes comparable to or even exceeding those of traditionally employed individuals.
Non-traditional workers continue to face significant challenges in the housing market due to their employment status, necessitating new approaches to lending.
