Research highlights how employment status affects homeownership ambitions.
- 50% of non-traditional workers feel employment impacts property buying plans.
- Gig economy workers and contractors most affected by employment status barriers.
- Fluctuating earnings and mortgage difficulties further complicate buying a home.
- Many are forced to rent longer or abandon ownership dreams.
Research conducted by The Mortgage Lender reveals that 50% of ‘non-traditional workers’ perceive their employment status as a hindrance to their homeownership plans. This group includes gig economy workers, contractors, and zero-hour contract employees. Gig economy workers are the most impacted, with 70% believing their employment status negatively affects their property buying ambitions.
Contractors and zero-hour contract workers follow closely, with 68% and 60% respectively acknowledging similar sentiments. Freelancers are also affected, with 57% feeling their employment status impacts their buying capabilities. Surprisingly, self-employed individuals are less affected, with only 43% expressing concerns.
Among those whose employment status hinders their property ambitions, 20% attribute this to fluctuating earnings, which disrupt their purchasing plans. Such financial instability forces 15% of these workers to rent longer than they desire, while 17% consider abandoning their homeownership goals altogether.
A noteworthy concern is the ability to obtain a mortgage, with 17% worried about not qualifying for one, and 4% fearing they won’t be able to remortgage. Affordability remains a significant hurdle, with 13% worried about the high cost of moving and the overall expense of owning a home.
In an attempt to pursue their homeownership dreams, 13% of these workers consider relocating abroad, hoping for a more accessible property market. This reflects a broader sense of frustration among non-traditional workers about their limited opportunities in the UK housing market, largely due to employment-based financial assessments.
Sara Palmer, distribution director at The Mortgage Lender, expressed concern over this issue, stating, “It can be incredibly disheartening to have core life ambitions, like owning your own home, be put on hold due to your employment status.” She emphasises that non-traditional earners often have incomes comparable to, if not higher than, those of traditionally employed individuals, advocating for a fairer, case-by-case assessment approach.”
Equal opportunities in the property market are essential, regardless of employment type.
