Renters pay­ing heavy price

Belfast Telegraph - Propertynews - - Home Finder -

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.

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