Before getting onto the property ladder, the average UK adult will pay more than £63,000 in rent, according to a new study.
Indeed, it has been discovered by researchers that people who have bought their first home within the last five years had previously been charged around £625 each by their landlord. And with it taking an average of almost eight and a half years to save for that first property, the research from home builder Keepmoat Homes put the figure of rent paid at £63,225.
This means they’ll have already spent the equivalent of more than a quarter of the average £228,903 property in the UK, it points out.
‘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,’ said Tim Beale, the firm’s chief executive officer.
‘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,’ he explained.
‘In reality home ownership can cost less than your rent. For example, with our average selling price of £156,000, the standard monthly mortgage repayments would make you approximately £100 a month better off than paying the typical £625 rent,’ he added.
The study also found that pessimism is rife among renters, with 75% of them believing that saving to buy a home whilst renting is ‘impossible’. Those who have managed to get on the property ladder within the last five years spent an average of five years saving for their deposit, putting down an average of £24,033.
When looking at how this money was raised, 40% of respondents revealed that they had received financial help from their parents, 20% had benefited from inheritance, while 25% moved back in with their parents to cut expenses. A further 24% considered doing the same but were able to avoid it.
Many of those still renting believe that they won’t be in a position to consider buying a property for at least four years from now. The research also found that a popular way of earning additional funds for a deposit is to take on a second job, with 18% seeking extra work while paying a monthly fee to a landlord.
Meanwhile, one in four have sacrificed holidays, and one in three have cut back on day to day luxuries such as magazines, flowers in the home and TV and movie costs. 30% have changed their eating habits, opting for packed lunches at work and 18% have changed their food shopping routine, looking for reductions to cut costs.
Of all those polled via OnePoll, 75% believe they should be given additional support when it comes to covering the cost of renting whilst trying to save for their first home.