Shock as rental costs increase by 345% in 18 years
For many Brits today, the dream of owning a home continues to slip away as their income is eaten up by every-rising rental rates while the houses they dream of buying become increasingly unaffordable as values continue to rise.
In days gone by, renting instead of purchasing a home had a number of benefits, including the freedom to move around whenever a new prospective job opportunity came along. It also meant that the burden of maintaining the property from the perspective of heating and construction lay with the landlord, not the tenant. The greatest benefit, however, was the affordability.
In the post-war era, those who rented paid very little to their landlord in exchange for a roof over their heads, allowing them to continue saving for a house of their own when the time felt right. As the decades passed, however, the country’s population began to grow – along with the demand for great value new-build housing, and at this point a career as a landlord became a fantastic realisation for those with the necessary capital. And this high demand for housing allowed them to increase rental costs as tenants vied for quality accommodation.
Flash-forward to today, and the country is still facing a massive shortage of housing, and the gulf between the haves and have-nots is wider than ever.
Since the turn of the century alone, rental costs to private landlords have increased, on average, by 345%, whereas mortgage payments have only increased by 62%.
Is it any wonder, therefore, that almost 12 million out of the 17 million private renters across the UK have given up on the hope of ever affording a property with such high sold house prices?
This lack of housing is not only destroying the dreams of prospective home buyers, but also increasing the wealth of landlords at the expense of younger generations.
First-time buyers – as of 2018 – are expected to have over £33,000 available for a deposit in order to buy their first home, but with rental payments swallowing any leftover cash it seems that all except the highest-earning tenants will find themselves stuck in the rental trap.
Furthermore, as city-centre rented accommodation becomes more prevalent across all age-groups due to the geographical consolidation of work opportunities, along with fast, reliable internet access and better prospects for a social life, it appears that there doesn’t appear to be an end in sight for those hoping to own their first property.
Moreover, those who need to sell their house fast are likely to find the process more difficult in the future as the number of prospective buyers in the marketplace with the financial means to purchase begins to fall. While they can always hope for the best and accept a low offer, it may be worth their while to contact National Homebuyers for an obligation-free quote, and if they are happy to proceed, they could sell their home in as little as two weeks.
Can’t find a buyer? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.