12th February 2016
The average first-time buyer will have to shell out £64,000 in rent before getting their foot on the property ladder.
A survey by the Association of Residential Letting Agents has predicted a 22% increase in rental costs for first-time buyers, who currently spend £52,900.
Those buying a home in the North East will have spent the least in rent at £31,300 and those in London, unsurprisingly, will have spent the most at £68,300. The South East is the only other region when rental costs are more than average at £55,900.
The increase in the cost of putting a roof over your head means fewer tenants will be able to save for a home.
David Cox, managing director at ARLA, said: ‘Tenants are already spending a significant proportion of their income on rent and therefore struggling to save any money.
‘As house price affordability worsens and interest rates start rising more pressure will be put on renting with weekly rents likely to rise, so home ownership will remain out of reach for many.’
Cox warned that Britain is becoming a ‘nation of forever renters’ as nine in 10 tenants feel they are being held back by renting.
Over half, 51%, said saving for a deposit was the biggest problem and 23% said they would not be able to afford the monthly mortgage payments. Just over a quarter, 26%, said they were unable to afford the associated costs of buying such as stamp duty.
For four in 10 renters, spending wages on rent rather than being able to save was a problem.
‘It’s really worrying that so many renters don’t ever expect to be able to afford a home,’ said Cox.
‘As rent costs continue to rise, unfortunately more and more tenants will find themselves renting for longer as they have less ability to save. We need to take action now, before we become a nation of forever renters.’