First-time buyers pay £63,000 in rent payments before they get onto the property ladder
A new study has found the average adult in Britain will pay out more than £63,000 in rent before they get onto the property ladder.
According to the study from Keepmoat, people who have bought their first home within the last five years had been paying on average £625 every month in rent to their landlords. It takes renters on average eight and a half years to save up enough to buy their own home, in which time they will have spent a total of £63,225 in rent.
This means by the time they have saved enough to own their own home, they’ll have already spent more than a quarter of the average £228,903 property in the UK.
Tim Beale, the firm’s chief executive officer, commented:
“For many people, renting is an important first step towards home independence. It offers benefits like flexibility, allowing you to test different areas and types of home, before you commit to buying somewhere,’
‘However, this research highlights the considerable cost of renting and therefore it isn’t surprising to see that for over half of people asked, say they feel as if the dream of home ownership will never be possible,’.
The study also found that of those who had bought their first home in the last five years, or who are still renting, three quarters deem it ‘impossible’ to save for a home while renting.
Those surveyed who have bought a home spent almost five years saving before putting down the average deposit of £24,033 on their property. This figure is more than 80% of the average adult’s annual salary.
The so-called bank of Mum and Dad is as prevalent as ever, with four in 10 respondents leaning on their parents for financial support when it came to their deposit. Additionally, a fifth relied on an inheritance and a quarter moved back in with their parents to save on rent.
For those still renting, on average they predicted it will take at least four years before they are in a position to think about buying their own home. Researchers also found 18% of renters have taken on two jobs in a bid to save for a deposit while paying rent every month.
Wannabe homeowners have to cut back on a lot to come up with the necessary deposit – forsaking holidays and cutting back on luxuries like magazines, flowers in the home and TV and movie costs.
Unsurprisingly, three-quarters of those polled believe something needs to be done when it comes to the cost of renting to help those trying to save for their own home.
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