The latest research by SpareRoom, UK property website, revealed that most renters in UK cannot afford to save for a mortgage deposit.
As such, 42% of tenants said they do not earn enough to pay the rent and save for a deposit, and further 19% said they will never be able to get on the property ladder. About 20% of Brits spend 2/3 of their income on rent.
The proportion of those who have the opportunity to save have less than 5,000 pounds so far. The average amount of money Brits can save is 12,125 pounds, or 7.3% of an average house price in the UK. Let us remind that most British banks only offer 90% LTV mortgages.
Commenting on the findings, Matt Hutchinson said: “What’s clear is that something has to change. House prices need to fall, mortgage lenders need to offer more assistance to first time buyers with higher loan to value mortgages, and the Government has to accept there is a need for more affordable housing to purchase and affordable rental properties available privately or through housing associations.”