People rent property due to financial barriers: TPN Credit Bureau

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Most people who rent residential accommodation do so because of financial barriers with 48.1% admitting that they can’t afford to buy property, according TPN Credit Bureau. TPN Credit Bureau recently released its third national residential tenant survey which provides the property sector with insights into tenant needs and wants.

More than 170,000 tenants were surveyed, and 19,000 completed responses were received, making the TPN Tenant Survey Report the largest holistic tenant survey in South Africa.

The organization’s Industry Principal, Waldo Marcus says, “Almost half of tenants say they remain in the rental market or they entered the rental market because of affordability issues. One of the other financial barriers is that a lot of tenants – and that’s about 9.9% – say that they have a poor credit record. Now, this impacts potential buyers’ ability to access bonds through the financial institutions, and of course, you need that good credit record for them to grant you a bond or secondly, grant you a good interest rate.”