First-time buyers spending £50k on rent

12 February 2016

housemoney Buying a house in 2016 is hard if you're a first-time buyer. Well, here's another kick in their gussets - if they're buying this year, by the time they get the keys, they will have spent an average of £52,900 on rent.

This is according to the numbers crunched by the  Association of Residential Lettings Agents (ARLA), who note that, if you're just starting to rent now, by the time you buy a house, you will have spent £64,400 on rent. Lovely, cheerful news there.

They reckon that rent will account for 16.4% of total lifetime earnings for today's first-time buyers. Of course, there's regional variations, but it is still a lot of money.

"Rents are becoming alarmingly unaffordable due to the lack of available housing," says David Cox, managing director of Arla. "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."

The figures used were compiled by the Centre for Economic and Business Research, and are based on the average first-time buyer being 31 and people moving out at 18.

Of course, the price of houses is going up, but so too is rents being given to landlords. Rents paid to private landlords in the UK went up by 2.5% last year.

TOPICS:   Banking   Mortgages

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