A growing number of renters are hoping to take advantage of falling dwelling prices by applying for home loans.

According to DBM Consultants’ latest Atlas survey data, 21 per cent of renters said they are planning to take out a home loan in the year ahead.

In December the proportion of renters planning to borrow for a house purchase was 14.8 per cent.

DBM chief executive Kipling Zubevich said: “The higher consideration of home loans among renters comes from a combination of factors – cautious spending habits coupled with enforced savings have put them in a better position than they expected, and they are likely to view declines in property process as the opportunity they have been waiting for.”

The survey also revealed a fall in the number of borrowers planning to refinance their loans. DBM found that 8.4 per cent of borrowers were planning to pay out or refinance their current loans, compared with10.3 per cent in the December survey.

Zubevich said this was likely due to a growing number of borrowers thinking that they might not be approved for finance in the present circumstances.