The report from TML highlights significant obstacles faced by non-traditional workers in purchasing homes.
- Half of the non-traditional workforce in the UK feels their job status hinders their property buying ambitions.
- Gig workers, contractors, and freelancers most commonly report these employment-related challenges.
- Fluctuating earnings and mortgage accessibility are primary barriers for these workers.
- Some are forced to rent longer or consider moving abroad due to these difficulties.
The recent findings by The Mortgage Lender (TML) reveal that 50% of those in non-traditional employment roles in the UK experience difficulties in achieving homeownership due to their job status. This issue is particularly poignant among gig economy workers, with 70% expressing concerns over employment impacts on their property aspirations. Contractors and zero-hour contract workers are not far behind, indicating 68% and 60% respectively, while 57% of freelancers echo these sentiments. Self-employed individuals appear somewhat less affected, at 43%.
A significant challenge pointed out is the fluctuating nature of earnings in these non-traditional roles, with 20% of respondents linking this to their struggles with home buying. The instability in income not only extends the period individuals depend on renting—15% report needing to rent longer than desired—but also forces 17% to ponder abandoning their property ownership dreams altogether.
Access to mortgage products is another stumbling block, with 17% worried about the feasibility of securing a mortgage. The apprehension extends to refinancing options, as 4% believe they may not qualify to remortgage. Financial concerns further compound these issues; 13% are burdened by the potential costs associated with moving.
Moreover, the dire circumstances faced by some even lead them to contemplate relocating to other countries where homeownership might be more attainable. A similar 13% considered this drastic option, underlining the profound effect employment status can have on property-related goals.
Sara Palmer, distribution director at TML, highlights the frustration felt by those affected, stating that fundamental life goals, such as owning a home, should not be hindered by employment status alone. She points out that some lenders might oversimplify applicant assessment to a mere tick-box exercise, disregarding the often comparable, or even superior, annual incomes of non-traditional earners compared to traditionally employed individuals. She advocates for a more nuanced, case-by-case review process, ensuring fair evaluation for all applicants.
The study underscores the need for a more equitable approach to mortgage accessibility for non-traditional workers.
