(qlmbusinessnews.com Tues. 23rd July, 2024) London, UK —
New Research Reveals Stark Reality for Renters Seeking Home Ownership.
Recent research highlights the significant challenges faced by renters aspiring to buy homes in their local areas. Only one in eight renters can afford to purchase a property where they currently live, according to a new report from the Skipton Group.
The study, conducted in collaboration with Oxford Economics, indicates that high rents, rising bills, and steep house prices make it increasingly difficult for renters to buy their first home. In contrast, existing homeowners find it easier to move to new properties. The index suggests renters are four times less likely to be able to buy than those who already own homes.
Mary Harris, a software engineer earning £50,000 annually, exemplifies this struggle. Despite her relatively high income, she finds that rent and bills consume about two-thirds of her salary. Living in Birmingham, where the average price for a first-time buyer home in the West Midlands was £215,000 last year, Harris feels trapped in her situation.
“I feel completely trapped. The chances of me owning my own house are pretty much non-existent. I want to cry, scream, and shout, but none of that will solve the issue – I just don’t have the money to save for a deposit,” Harris shared. The stress of trying to save for a deposit has caused her many sleepless nights.
Harris also expressed scepticism about the new government’s plan to build more homes, doubting it would significantly improve her chances of buying a house. She advocates for mortgage lenders to consider her consistent rent payments as evidence of her ability to make mortgage repayments.
Regional Disparities in Home Ownership
The research, which analysed data from the Skipton Group, the Bank of England, and the Office for National Statistics, evaluated the financial feasibility of buying and maintaining a home across England, Wales, and Scotland. It factored in the average price of a first-time buyer home in various regions.
The findings revealed that Scotland and the East of England are the most accessible regions for first-time buyers, due to lower house prices and higher wages, respectively. Conversely, the West Midlands and Wales are the hardest regions for first-time buyers due to a combination of low savings and moderate property prices, while high house prices make London particularly challenging.
High rent and energy costs have made saving for a deposit increasingly difficult for tenants, regardless of their income. The report found that for potential first-time buyers in the lowest income quartile (earning less than £22,850 a year), less than 1% could afford to enter the property market in their area. Even among renters in the highest income quartile (earning more than £71,250 a year), only 44% could afford to buy a home.
“For some, our findings paint a bleak picture, notably for first-time buyers,” said Skipton Group’s chief executive, Stuart Haire.
Additional research from First Direct, a part of HSBC, indicates that a third of private-sector tenants who have recently faced rent increases are too financially constrained to save any money.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
