COST OF LIVING IN THE UK: DIFFICULTIES FOR FIRST TIME BUYERS
Renting is an important first step towards independence for many young people. The costs involved with renting however, are proving to be a massive hurdle in owning your own home. A study commissioned by construction specialists Keepmoat Homes suggests that the average adult in the UK will spend more than £63,000 on renting before being able to afford a leg up on to the property ladder, with many typically paying in the region of £625 per calendar month in rent.
It takes people 8 years on average to be able to save up enough for a deposit for their own home, handing over a total of £63,225 to their landlords beforehand. Shockingly, this equates to the value of a quarter of the average property in the UK, which is estimated to be £228,903. There is no surprise then that over 50% of people questioned said they felt ownership was not possible. The sad truth is that monthly mortgage payments can cost less than rent, in some cases by about £100.
Almost half (4 in 10) said they had to depend on their parents for financial help with the deposit, while a fifth leaned on an inheritance. A quarter of them even moved back in with their parents in order to save money, while a similar figure (24%) considered it, but were eventually able to get by without doing so.
The respondents who were still renting typically believed it would be another 4 years at least before they would be able to consider buying their own place, with almost 1 in 5 working two jobs in order to save enough money for a deposit. Taking a packed lunch to work was a method of saving opted by 30%, while 18% said they did their shopping in the supermarket reduced section. Foregoing holidays is being done by a quarter, and a third have scaled back on luxuries such as Netflix, magazines, and err... flowers.
Many people are reliant on the Government-backed Help to Buy scheme - a program which helps people save for a deposit.