New research has revealed that a first time buyer will have spent a huge and scary £56,900 on rent before they purchase their first home (londonlovesbusiness.com).
The average cost of renting a property outside London rose by 5.1% in the 12 months to April, while tenants in the capital faced a 7.7% increase, according to the latest figures from referencing firm HomeLet. As an article in the Guardian worryingly highlighted, this means that the average rent outside London rose to £764 a month and within Greater London the monthly cost for tenants hit an average of £1,543.
Making this situation worse is the fact that rents are becoming more inflated as the shortage of available housing continues to rise. In particular, this is a huge problem in London, with the rental market being highly competitive, with far more prospective tenants looking for properties than actual houses available.
These figures cover the first few months after new higher stamp duty charges were introduced on second homes and investment properties, as landlords are raising rents in a bid to make up for their lost cash in transaction costs.
Young working professionals feel trapped into having to rent a property which, on average, costs between £600 and £850 per month for just a room, when they could actually now have a mortgage with help-to-buy that works out a lot cheaper. In addition to reduced costs, you can own your own house, knowing that you are sitting on an asset as opposed to just throwing money away.
London help-to-buy has aided the property market to an even greater extent. London Help-to-Buy means that you could afford to buy an Inspired London home with a 40% equity loan, 55% mortgage and only a 5% deposit. Essentially, it is the same as the government’s existing help to buy equity loan scheme except “twice as generous” because you can borrow up to 40% of the home’s value, instead of 20% under the current scheme.
Our homes start at just £175,000 and combine stunning design with excellent fittings. Many of our homes also offer residents the chance to enjoy privileged access to a 10th floor ‘sky garden’ and BBQ.
To find out more information about our high tech, high spec apartments, please call 020 8688 6552.