The average renter will spend £52,900 on rent before buying
According to the Mirror new official figures the average price of a home has increased by £18,000 during the last year.
This data from the Council of Mortgage Lenders also showed that lending to first-time buyers, home movers and buy to let investors is at the highest levels of lending since 2007.
England’s property prices have increased by 7.3% in the year to December now reaching an average of £301,000, with London continuing to be the most expensive region at the average house price of £536,000.
Chief executive of Shelter Campbell Robb said the rising cost of a home means many people are losing hope of getting on the housing ladder and “those without help from the bank of mum and dad are facing a lifetime trapped in expensive and unstable private renting.”
A report from the BBC has released figures from ARLA that show that first time buyers in England who get on the property ladder this year will have spent £52,900 on average in rent.
For those starting to rent now this figure will jump up to £64,400 by the time they buy a home.
These figures were compiled by the Centre for Economic and Business Research are based on the average first time buyer being 31 and renting from the age of 18 after moving out of their family home and also takes into consideration all forms of renting – not just privately.
Managing Director of ARLA said; “Rents are becoming alarmingly unaffordable due to the lack of available housing, the north-south divide we’re currently seeing in the UK is a clear illustration of this. The London rental market is competitive, with far more prospective tenants looking for properties than actual houses available. This is pushing up rents in the capital, which will continue to put pressure on surrounding areas, including the south east of England, as Londoners relocate to avoid high rent costs.”
A former tenant told the BBC; “We rented for five years and worked out we’d spent £35,000 on rent. We have bought now thankfully. No more throwing our money at someone else.”
The latest official figures from the Office of National Statistics show that the cost of renting a home is now rising faster than the general cost of living which is proven in figures released from the Ministry of Justice that show evictions last year reached a record high of 42,728.
With the cost of renting rising; should a more mandatory referencing procedure be put in place as the monthly cost of renting is starting to cost more than a mortgage and general cost of living?
Should referencing tenants be as thorough as mortgage application guidelines?
Why is there a minimum standard of referencing and affordability required for those landlords in the private rented sector who require a mortgage to supply homes for tenants, and not a minimum standard of referencing for those tenants who live in the properties?
See what our members are saying about this on the forum!