More than a third of self-employed workers do not believe that they will ever get onto the housing ladder, according to research by Aldermore.

The lender found that 37% of self-employed people think they will never buy their own home, while a further 28% expect it will take them more than a decade to do so.

The research reveals that 13% are reconsidering being self-employed in order to improve their chances of becoming home owners.

Respondents feel that the pandemic has exacerbated barriers to home ownership. 

One in five (20%) self-employed renters say they are more motivated to buy due to the lockdown experience and one quarter (25%) are currently actively saving for a deposit.   

However, many now believe that conditions for buying as a self-employed worker have worsened. 

Over a quarter (28%) say saving up for a deposit is more of a challenge now due to the financial impact of the pandemic and one in five (18%) have delayed their home buying timeline due to the pandemic.  

Despite over a quarter (27%) of self-employed renters now seeking to improve their credit to boost their home buying chances, 14% say their credit score has been negatively impacted due to the pandemic. 

These increased challenges have meant over a third (36%) of self-employed renters say they feel buying a home is unobtainable for them right now.  

While the housing market has rebounded strongly, Aldermore’s research suggests the self-employed may be over-looked. 

While four in five (78%) self-employed people believe owning a home is an important life step, nearly half (44%) think the home buying process is confusing.  

Furthermore, over half (56%) think mortgage lenders do not do enough to support the self-employed. 

With only 14% of self-employed workers having consistent income month to month, many feel high street lenders do not give them a fair hearing when going through the application process. 

The number one reason for a mortgage application rejection for the self employed was being self-employed, with a third (32%) citing this as a reason for a rejection.  

Only a third (29%) of self-employed home owners believe mortgage lenders fully understood their earning capabilities when they applied, with half (50%) thinking their lender only understood to a degree and nearly a quarter (21%) say their mortgage lender did not understand their earning capabilities at all. 

This has led to two-thirds (64%) of the self-employed workers believing mortgage lenders treat them less favourably than those who are employed with a regular salary. 

Aldermore head of mortgage distribution Jon Cooper says: “The UK is an entrepreneurial nation, and the growing self-employed workforce is integral to our economy, so it is disappointing to see persistent barriers for them when seeking to secure a mortgage, which appears to have been exacerbated by the pandemic.   

“The self-employed need not despair, however, as the growth of specialist lenders has opened up an increasing number of options that can provide pathways to home ownership. 

“Our research shows 52% of the self-employed workers in the UK have seasonal or extremely variable income streams month to month, which may not fit the tick-box approach of many high street lenders, but specialist lenders can dig into the detail to understand complicated income streams ensuring the self employed have opportunities to get on the housing ladder.”self