A generation likely to pay the equivalent of huge mortgage deposits on rent

Thu, 03 Mar 2016

A generation likely to pay the equivalent of huge mortgage deposits on rent
The renters of England have handed over, since 2010, the equivalent of a fifth of the average price that one can expect to pay for an affordable house.

According to the research of housing charity Shelter, renting a two bedroom property in England would cost on average £41,196 in the five years following 2010. This is equivalent to a 19 per cent deposit on an average first time buyer home of £216,528.

In London, the prices are even more extreme. A renter, for the same period of time, can be expected to pay £89,269. This would be the equivalent of a 23 per cent deposit of a first time buyer's choice in London, a property of an average £394,905.

Shelter used data from the land registry office and the valuation Office Agency. It used the figures to highlight how many people in the UK are caught in a "rent trap" which prevents them from getting out of rented accommodation and onto the housing ladder.

Shelter's chief executive Campbell Rob, said "When just five years of rent could get you the deposit on a house, it's no wonder England's renters feel like they're getting a raw deal, paying through the nose for something they can never call their own … Our drastic shortage of affordable homes is leaving millions of people stuck in their childhood bedrooms in a bid to save money."

The Help to Buy schemes are very good at helping on an individual basis, but so far, the effects that they have had on the market at large has by no means been enough to make it more accessible for all first time buyers.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.


Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company

HomeBuyService.co.uk is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy

Get in Touch