Renters Face Decades-Long Wait to Buy a Home
A third of renters in the UK are facing a 35-year slog to get onto the property ladder, according to new research from property website Zoopla. The study found that the average renter would need to save for 35 years to afford a deposit on a home, with the situation particularly acute in London and the South East.The research, which analyzed data from the Office for National Statistics and other sources, found that the average rent in the UK is now £1,078 per month, while the average house price is £285,000. To save a 10% deposit of £28,500, a renter would need to put aside £200 per month, which would take 35 years to accumulate.
Regional Disparities in Housing Affordability
The situation varies significantly across the country. In London, the average rent is £1,800 per month, and the average house price is £530,000. To save a 10% deposit of £53,000, a renter would need to save £400 per month for 35 years. In the North East, the average rent is £600 per month, and the average house price is £160,000, meaning a 10% deposit of £16,000 could be saved in just over six years if saving £200 per month.
According to Zoopla's Richard Donnell, 'The challenge for renters is that they are not only having to save for a deposit but also pay high rents, which leaves little room for saving. The situation is particularly difficult for those on lower incomes.'
Impact on First-Time Buyers
The research also found that the number of first-time buyers has fallen by 20% over the past year, with many struggling to get onto the property ladder. The average age of a first-time buyer is now 34, up from 30 a decade ago. The situation is expected to worsen as interest rates rise and mortgage affordability becomes more challenging.
Sarah Coles, a personal finance analyst at Hargreaves Lansdown, said: 'The dream of homeownership is becoming increasingly unattainable for many renters. With rents rising and house prices remaining high, it's no wonder that so many are facing a long slog to save for a deposit.'
Government Initiatives and Policy Response
The government has introduced several schemes to help first-time buyers, including Help to Buy and Shared Ownership. However, critics argue that these schemes are not enough to address the underlying issues of housing affordability and supply. According to the National Housing Federation, more than 8 million people in England are living in unaffordable, insecure, or unsuitable homes.
In response to the research, a spokesperson for the Ministry of Housing, Communities and Local Government said: 'We are committed to helping more people get onto the property ladder. We have built over 600,000 new homes since 2010 and are investing billions in affordable housing. However, we recognize that there is more to do to make homeownership a reality for all.'
