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First-time buyers spend £52,900 on rent


First-time buyers will have already spent an average of £52,900 on rent before they move into their first house, with costs rising to £64,400 for those starting to rent now, according to research from the Association of Residential Lettings Agents (ARLA).

Rent will account for 16.4% of total lifetime earnings for today's first-time buyers, according to the research. There are also wide regional differences, with those buying a property in London spending £68,300 on rent and first-time buyers in the North East spending £31,300.

The figures show that the increasing cost of renting is preventing tenants from being able to save for a home and assume the average first-time buyer being 31 and moving out of their family home at 18.

David Cox, managing director of Arla, said:
“Tenants are already spending a significant proportion of their income on rent and therefore struggling to save any money.

“As house price affordability worsens and interest rates start rising more pressure will be put on renting with weekly rents likely to rise, so home ownership will remain out of reach for many.

"Rents are becoming alarmingly unaffordable due to the lack of available housing.

"The north-south divide we're currently seeing in the UK is a clear illustration of this.

"The London rental market is competitive, with far more prospective tenants looking for properties than actual houses available.

"This is pushing up rents in the capital, which will continue to put pressure on surrounding areas, including the south east of England, as Londoners relocate to avoid high rent costs."

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