Renters to be priced out of the market by 2026 as deposits rocket 40 per cent
A lot has been made of the problems first-time home buyers are having at the moment – but won't someone please think of the renters?
A new report by Money.co.uk has suggested even those in the rental market could be priced out of the market by 2026 – as deposits rocket by 40 per cent to £1,111, some 70 per cent of the average worker's monthly income.
Across 68 per cent of the country, deposits will be equivalent to six weeks' rent.
The problem is expected to be particularly bad in the capital, where deposits will rise to £2,733 – 120 per cent of the average monthly salary.
In the South East, the average deposit will rise to £1,469, or 83 per cent of the average monthly salary – while in the South West, renters will be forced to pay out 80 per cent of their median monthly earnings.
Meanwhile, the average monthly rent will rise by 19 per cent in the next 10 years – with a third of households in England and Wales renting by 2026.
Hannah Maundrell, editor in chief of Money.co.uk, said legislation designed to help first-time buyers onto the housing ladder may hurt renters.
"With the forthcoming changes to tax legislation and crackdown on buy to let mortgages likely to erode landlords’ profits, there’s little doubt these costs will be passed onto tenants," she said.
"The current booming property market means deposits are likely to continue shooting upwards in the future, and we could well see six weeks’ worth of rent extended to eight."
