Four in 10 renters 'cannot save'
Four in 10 people living in rental accommodation cannot afford to save anything for a deposit to buy their own home, as high living costs and loan repayments are already swallowing up their cash, a study found today.Just over one in seven people surveyed said they are having to spend more than two thirds of their take-home pay just on their rent, website SpareRoom.co.uk found.
A fifth of those questioned cannot see a time when they will be able to get on the property ladder, while a further 17% believe they will have to wait longer than a decade before they are in a position to buy.
Some 15% of renters said they are regularly dipping into their savings to make ends meet and this figure rose to 60% for people aged under 30.
Almost half (48%) of renters aged under 30 said they still owe more than £10,000 in university fees.
Rents have soared over the last year as people unable to get on the property ladder, because they cannot raise a deposit or meet tightening borrowing criteria, have stayed in the rental sector.
A recent study from LSL Property Services, which owns chains Your Move and Reeds Rains, found that strong competition among tenants has helped the average rent to rise to £712 a month on average.
It found that rents rose at their strongest annual rate in London, where at £1,038 a month they are 4.2% higher than a year ago.
SpareRoom director Matt Hutchinson said: "Soaring living costs mean it's a struggle for many households just to keep their heads above water each month, let alone have enough spare cash to put aside towards a deposit.
"The survey shows that even those who are squirreling away funds have not managed to save anywhere near enough to buy the property they want."
Rents have soared over the last year as people unable to get on the property ladder, because they cannot raise a deposit or meet tightening borrowing criteria, have stayed in the rental sector.
A recent study from LSL Property Services, which owns chains Your Move and Reeds Rains, found that strong competition among tenants has helped the average rent to rise to £712 a month on average.
It found that rents rose at their strongest annual rate in London, where at £1,038 a month they are 4.2% higher than a year ago.
SpareRoom director Matt Hutchinson said: "Soaring living costs mean it's a struggle for many households just to keep their heads above water each month, let alone have enough spare cash to put aside towards a deposit.
"The survey shows that even those who are squirreling away funds have not managed to save anywhere near enough to buy the property they want."
© 2013 Press Association