Alarmingly high cost of renting for First-time-Buyers
The average First-time-buyer will have spent nearly £53,000 on rent in their lifetime before they have saved enough to buy a home, in London that figure rises to almost £70,000, according to new research.
According to the Association of Residential Letting Agents (ARLA) in its Cost of Renting report, the average first-time buyer will have spent 16.4% of their total lifetime earnings on rent before getting on to the property ladder.
The generation following will spend even more, for any young person moving to London today will pay out over £90,000 in rent by the time they can afford to buy a home, according to the report.
Managing director of Arla, reportedly said: “The rising cost of rent in this country is a huge issue, and is preventing tenants from being able to save to buy a home.
“Our Cost of Renting report reveals that tenants are already spending a significant proportion of their income on rent and therefore struggling to save any money. However, as house price affordability worsens and interest rates start rising, more pressure will be put on renting with weekly rent likely to rise, so home ownership will remain out of reach for many.
“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, as Londoners relocate to avoid high rent costs.”
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