Many Renters Still Can Not Afford to Buy!

by Mark Johnston

Many Renters Still Can Not Afford to Buy!

Every day 8.5 million people in England travel home from work, walk through someone else’s front door and go to sleep in a house that is not theirs.

In a recent survey, nearly half of private renters said the house they live in did not feel like ‘home’.

decisionSo it seems that the British obsession with home ownership is as strong as ever  with around 96 per cent  of current renters still dream of owning a home someday.

However, recent figures from Rightmove, the leading property website, reveals that the number of people ‘trapped’ in rented accommodation has reached the highest level for over 2 years.

Data shows that a record three in five or 60 per cent of today’s renters are ‘trapped’ as they would like to buy but can not afford to and a third of these  which equates to 31 per cent are ‘regressive renters’ who previously owned a property but have returned to the rental sector.

Current  research also shows record levels of ‘trapped renters’  who are tenants who would like to buy but can not afford to  has risen from 56 per cent  a year ago to 60 per cent.

Campbell Robb, Shelter, housing and homelessness charity, chief executive, said: “This research reveals the harsh reality that young people today are facing because of our shortage of affordable homes.”

Shadow housing minister Jack Dromey added that “This research shows the scale of the housing crisis and the impact it is having on young people and families, who are locked out from home ownership.”

So it appears that despite various government initiatives such as the funding for lending scheme and the New Buy scheme making house buying more attractive , the cost of renting continues to rise therefore making saving a deposit even harder.

Analysis also shows that ‘generation rent’ nationally now face an estimated 14 years wait to save for a deposit to buy a property.

Lucy Jones, of LSL Property Services “At some point in the summer of 2015, rents are set to reach an average of £800 per month.”

On top of increasing rent rises which hinder renters from saving a deposit, recent figures have revealed that house prices have risen dramatically over the past few months.

Craig McKinlay, mortgages director at Halifax, therefore suggests,  “We are seeing a change in the social landscape of the UK, with a widening split between those who can and can not afford to buy a home.”

Industry experts have suggested that housing is the only basic human need for which rapid price rises are met with celebration rather than protest.

Property experts state that despite working hard and saving what they can each month, today’s young people face life changing choices between starting a family or buying a home of their own.

Although In light of all this doom and gloom  it still appears that the traditional British love affair with property ownership seems as strong as ever and today’s tenants are so committed to realising their dream of home ownership that most say they willl never concede defeat.

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