Research from mortgage market specialist Pegasus Insight shows a growing cohort of renters preparing to move into homeownership. According to the Tenant Trends report (Wave 2 2025), 29% of tenants have looked into whether they could afford to buy a property in the past year, with many also saving for a deposit.
The findings suggest a potential pipeline of first-time buyers, particularly among younger renters. Among tenants aged 25 to 34, 43% have considered their affordability, while 34% have searched for properties. Central London tenants show particularly high engagement, with 39% checking affordability, 20% viewing potential homes, and 21% speaking to mortgage advisers.
This signals a meaningful opportunity for lenders and brokers. While affordability pressures remain significant, a sizeable minority of tenants are positioning themselves to become mortgage applicants.
Longer-term intentions show that 51% of tenants plan to buy a property at some point, while 22% expect to remain in the private rented sector. The likelihood of buying declines with age: 68% of 18–34-year-olds hope to own their own home, compared with just 15% of those over 55.
Mark Long, founder and director of Pegasus Insight, said: “Too often, tenants are seen as a captive audience for landlords rather than tomorrow’s first-time buyers. But the fact that nearly a third are actively researching mortgage affordability shows there is a sizeable group getting ready to transition into homeownership. With close to 20 million people living in the private rented sector, that equates to as many as six million potential new mortgage customers.
“For brokers and lenders, this is a clear signal: these are future borrowers who will need guidance, accessible products and support to bridge the gap between renting and buying. One of the most important steps the market can take is to evolve affordability assessments. At present, many would-be buyers find themselves excluded, even if they have a proven track record of paying rent at levels equivalent to – or greater than – the mortgage they would be taking on. Innovative solutions that factor in rental payment histories are a good example of how to widen access.
“With the FCA having recently relaxed its guidance on affordability, some lenders may judge this to be the right time to broaden their approach. Recognising consistent rental records could help ensure responsible tenants are not unfairly locked out of homeownership. With carefully designed solutions, advisers and lenders have a real opportunity to connect with this emerging pool of first-time buyers.”
