According to the housing charity, Shelter, rents in England are now rising by an average of £300 per year, stopping thousands from being able to save for their first home.
Wages have remained stagnant over the last couple of years for many, while the average amount of rent paid between 2011 and 2012 rose by 2.8% (or £297) said Shelter in it’s report entitled ‘The Rent Trap’.
Shelter surveyed 4,300 renters and revealed that more than half only had £100 or less per month after paying out for rent and other essential bills. If those tenants could put that £100 away every month, it would still take them over 13 years to save the 10% deposit needed for the average house.
Rents appear to be rising the fastest in Surrey Heath, with landlords demanding £1746 more last year than the previous year. Other places with high increases include east London and the southeast of England.
Ali Reilly is a teacher living in rented accommodation in Reading with her husband and four-year-old son. She says the thought of owning her own home feels like an impossibility.
“The rent we pay each month means we don’t have the disposable income to save enough for a deposit of any kind. With rent so high, it seems impossible for people like us to save enough to get anywhere near what we need for a deposit.”
If you are struggling to save for your first house, it may be worth speaking to an accountant. For more information, please see our Personal Finance page.
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