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Blog HomeNow can save the average first-time buyer over 100k in rent!

16 Apr 2024
HomeNow can save the average first-time buyer over 100k in rent!

Young people are spending as much as £150,000 in rent

At 34 years old the average age of a first-time buyer isn’t surprising when you look at the estimated 16-year renting period for the average tenant in England, it’s no wonder young people are spending as much as £150,000 in rent. This assumes individuals first started renting in their late teens to early twenties. However, there are now an increasing number of people living with their parents for longer.

A study by letting platform Goodlord using its own rental data found that over the past year across England, the average person will pay £699 per month on rent, and this becomes £1,167 per person for those residing in London.

HomeNow’s own analysis suggests that their average Resident will save more than £1000 in rent and savings when renting with HomeNow.

Tenants could face nearly triple the expenditure if they continue renting

Across the UK tenants are spending a staggering £134,231 on rent throughout their 16-year tenancy.

For the South East, this figure skyrockets to £145,765 before the average tenant can become a homeowner.

These calculations are based on current rental rates, and individuals who have rented for several years may have previously paid less.

However, these figures provide good insight into the financial commitments facing today’s first time buyers, highlighting the challenges of saving amidst potential future rent increases.

Goodlord’s analysis also forecasts that tenants who are unable to transition to homeownership could face nearly triple the expenditure if they continue renting throughout their lifetime, amounting to a potential £511,753. For Greater London residents, this figure could soar to an eye-watering £854,143, for the South East £555,727 and £534,594 for the South West emphasising the significant financial impact of long-term renting.

HomeNow aims to help those stuck in the rental spiral across the UK. With our innovative rent-to-own scheme you can move into your dream home without spending the potential £150k.

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*Sources
Age of First Time Buyer
https://www.gov.uk/government/statistics/chapters-for-english-housing-survey-2022-to-2023-headline-report/chapter-3-housing-history-and-future-housing
Cost of Renting per property and cost per tenant
https://www.goodlord.co/newsagent (permission sought) data also present in https://homelet.co.uk/homelet-rental-index/london