The study of 2,000 tenants found that overall, 72 per cent of tenants wanted to own a property one day. Those aged 25-34 had the greatest desire for home ownership, with 88 per cent saying this was a goal of theirs.
In contrast, 70 per cent of tenants aged 45-54 want to own their own homes, while just half of tenants between the ages of 55-64 have the same aspiration. This drops to a third for tenants aged 65 and over.
The ability to put money towards a deposit likely affects the desires of older tenants, as Paragon’s survey found three quarters of those aged 18-24 put money away monthly.
For those aged 25-34, 71 per cent saved towards a deposit regularly while just 58 per cent of 35-44 year olds did the same.
Additionally, 45 per cent of tenants aged 45-54 said they put money away for a home compared to 41 per cent of those aged 55-64.
However, for those who were slightly older at over the age of 65, the capacity to put money away on a monthly basis for a deposit rose to 43 per cent.
The findings indicate that despite 49 per cent of private tenants being aged between 29 and 44, such tenants are more likely to move on as two thirds of those aged 18-24 expect to purchase their own homes in the next five years along with 42 per cent of 25-34-year olds.
Suiting a lifestyle
Older tenants tend to be happier with their rented properties, as the survey found this was the case for 68 per cent of over 55s who said they enjoyed renting or it suited their needs. The satisfaction with renting dropped to 49 per cent for those under the age of 55.
Across all age groups, 54 per cent of respondents said renting suited their needs or they enjoyed it.
As for the reasons people prefer to rent, 48 per cent said it meant they did not have to worry about repairs, while 35 per cent liked the ability to move when they wanted.
A third were happy with the location of their rented homes while 31 per cent said it gave them the option to live in an area they would otherwise not be able to afford. For a fifth of respondents, the property was said to be “perfect” for their needs.
Overall, two thirds of tenants were happy with their accommodation despite four in 10 believing some improvements could be made.
The satisfaction with accommodation was even greater for the 62 per cent of respondents who said despite not owning it, their properties felt like home.
Security and contentment in the private rental sector was not common for all respondents however, as 12 per cent said they did not like renting and 38 per cent said it was too expensive.
Furthermore, 36 per cent had worries they would be asked to move out while a third said they did not like the fact they could not decorate properties to their liking.
The majority of private tenants have a good relationship with their landlords, as 68 per cent of respondents said the interaction was positive.
Some 80 per cent said contacting their landlord was easy while 65 per cent said repairs were dealt with quickly and a further 58 per cent said repairs were done to a good standard.
Richard Rowntree, Paragon Bank managing director of mortgages, said: “Our research shows a strong desire to buy amongst younger tenants who will typically use rented property as a starter home before stepping on the property ladder. This cohort also is more able to save for a deposit, making their aim of buying a home more attainable.
“As tenants reach their middle-aged years, the desire to own a home becomes less pronounced, but so does the ability to save for a property. These tenants will typically stay in the private rented sector for a longer period, maybe for the rest of their lives.”
He added: “Of course, the UK is a nation of homeowners and many tenants naturally aspire to own their own property, particularly those in the younger age brackets, but people are generally happy in their rented home, recognise that it suits their needs and, on the whole, enjoy a good relationship with their landlord.”