16th
Apr 2015
Rents are increasing due to supply versus demand in line with property prices and a survey reveals that 92.5% firmly believe that they will never join the property ladder.
The Government has attempted to redress the situation with the introduction of the Help-to-Buy scheme and the lowering of stamp duty, but over 60% of tenants are adamant that this not enough.
A letting company that carried out the survey with 500 tenants released their findings in March this year..
62% of tenants would really love to own their own home and are trying to work towards their goal, but 87% simply feel resigned to the fact they will be renting for the rest of their lives.
Jane Morris, MD of the company said: “These stats show that many tenants are still unable to afford to buy a property and believe more should be done to help them. Recent research shows that homes in a fifth of local authority districts across the UK have increased in value by more than the average employee's annual wages over the past two years. The vast majority of these areas are in London, the South East and the East – 68 out of the 73.
“In eight local authority districts across the UK, the increase in house prices over the last two years have outstripped the amount someone would have typically earned over the period by more than £80,000.
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“These price rises have made it much tougher for first-time buyers to get on the property ladder in areas where they are renting. Many tenants are stuck in a difficult cycle of saving just enough for a deposit, only to find that prices have risen out of their reach again.”
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