Renters paying heavy price
FIRST-TIME buyers will have spent £52,900 on rent by the time they get on the first rung of the property ladder, according to a new report.
Future First Time Buyers (FTB) can expect to spend 22% more than that, according to the Cost of Renting report by the Association of Residential Letting Agents.
Compiled with the Centre for Economics and Business Research, the report reveals the average FTB in the UK in 2016 will have spent 16.4% of their total lifetime earnings on rent for all the years they were a tenant.
Last year alone (2015), on average people in the UK spent 22% of their wages on rent, increasing to 30% in London.
The Cost of Renting report found those leaving home and starting to rent this year, will spend an average of £64,400 before they are able to buy their first property — one fifth more than current FTBS getting on the housing ladder this year will be spending.
Nine in 10 tenants feel they are being held back from being able to buy. Saving for a deposit is the biggest obstacle, with over half claiming this is stopping them.
Although two fifths of UK renters are quite happy renting, the majority are not. Spending income on rent rather than being able to save is a problem for two fifths of renters, and a quarter think the government should do more for renters to help them get on the property ladder.
One in ten feel there are not enough family homes available to rent in the area they want to live.