Renters spend too much to save for own home

People who rent are increasingly being priced out of home ownership, according to the Association of Residential Letting Agents. Pic: Dominic Lipinski/PA Wire.

It warns that there is a real risk of some people never being able to afford to buy their own place with average rent expenditure accumulated by those starting renting now forecast to rise to £64,400.

David Cox, the Association’s managing director, 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.

“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 rent likely to rise, so home ownership will remain out of reach for many.”

In Yorkshire, the average spend is £36,000 and it is expected to rise to a total of £41,600 for a person starting to rent now. Unsurprisingly, average spend is highest in London, at £68,300.

The figures are based on people moving out at the age of 18 and buying 13 years later.

An associated survey of adults renting in the UK found that a fifth do not expect to ever be able to afford to buy a home.

While younger generations are more optimistic, with three-quarters of those aged 18-34 hoping to buy in the future, just half of those aged 35-54 felt the same.

A quarter of all respondents said the Government should do more to help renters get on the property ladder.