According to new research undertaken by the University of Bristol on behalf of financial services innovator Momentum UK, rents are now around half of take-home pay making tenants far worse off than someone owning their own home.
The study revealed that renters currently send roughly half of their salary to landlords each month meaning that they enjoy fewer holidays, save less money and are more likely to make forced cutbacks than homeowners.
The number of private renters in the UK is rapidly growing as buying becomes increasingly unaffordable. More than four million households in the UK now rent their home from a private landlord, nearly twice as many as 10 years ago.
Commenting on the study, Dominic Baliszewski, Director of Consumer Strategy at Momentum UK, said: “The average private renter loses around half of their pay cheque on rent at the beginning of each month, and for those living in London, it can be even higher. This not only limits their ability to save, but also means they have to cut back on expenses such as gym memberships, holidays and socialising just to get by.
“With home ownership in decline, the number of people facing these financial challenges and seeing their living standards fall is only going to grow. That’s why it’s so important that the government delivers on the pledges made in its housing white paper.”
One thing to come out of the white paper is a pledge to review space standards for new homes. Inspired Homes has long advocated smaller apartments to reduce the cost of homeownership and renting. Inspired’s micro-model is designed so that the cost of living falls within circa £850 per month. Our typical two-bedroom apartments rent for £1,300 per month equating to roughly £750 per person with utility bills and Council Tax. Energy costs are kept to a minimum with efficient heating systems, Smart thermostats and – of course – a smaller amount of floorspace to heat.
If you would like to find out more about our developments, call the sales team on 020 8688 6552. Or if you are looking to rent one of our low cost micro-apartments, call the lettings team on 020 7476 7001.