From the Brexit effect to the cost of downsizing and buy-to-let hotspots, find out how renters are missing out financially compared to homeowners.
Renters are twice as likely as homeowners to have no savings, insurance or pension products in place. Momentum UK together with the University of Bristol revealed that the main suffering for renters stems from their lack of assets and the inability to plan long-term. Renters are far less likely to pay for an unexpected major expense without having to borrow money from somewhere else.
Clydesdale and Yorkshire Banks created a survey together which revealed that only 41% of renters benefit from support from family members when buying their first home. In comparison, a total of 62% of those still living at home rely on help from their parents or family members.
And of those still living with their parents, 25% live rent-free. Those living in rented accommodation find getting on the property ladder more stressful.
House prices vs wages
In the five years since 2011, average house prices across the UK went up five times fast than weekly earnings. Since April 2011, house prices have increased by 36% whilst weekly salaries saw a rise of 7% over the same period, according to research by Resolution Foundation.
In 14 years’ time, by 2030, house prices in London will average at £1 million, say eMoov.co.uk. This assumption factors in price rises similar to the ones experienced over the last 15 years. For England overall, the average house price will reach £457,000, Wales’ average will come in at £307,000 and Scotland’s at £297,000.
According to Property Partner, April saw an increase of 11.5% in new rental properties being listed compared to March. Worcester experienced the biggest rise with an increase of rental listings by 49%, closely followed by Chelmsford, Stevenage and Southport, which all went up by more than one third.
Should I stay or should I go?
A Brexit could drastically reduce the country’s construction workforce with big effects on plans to build hundreds of thousands of new homes nationwide, according to the National Association of Estate Agents and Association of Residential Letting Agents. An “Out” vote could, on the other hand, also help first-time buyers and renters as demand would drop slightly.
Source: The Independent