Demand for high-value deposits are leading to a number of young couples feeling trapped in rental accommodation, according to research from search website MyVoucherCodes.
Their research suggests that a growing number of young co-habitants are searching for property requiring only a 5% deposit.
Stuck
MyVouchercode surveyed a total of 1,672 21-25 year olds that have been in a co-habiting relationship in rental accommodation for a minimum of two years. Of the couples questioned, 76% replied that they felt stuck in the rental market.[1] The same survey suggested that young couples spend an average of £6,900 per year on rent.
On average, the survey suggests that young couples pay around £575 per month. Positively, when asked if their rent had increased since moving in, 64% said that it had not.[1]
Taking into account that all respondents have been living in the same accommodation for at least two years, the survey suggests that average young couples have spent around £13,800 on rent so far.
Future
As part of the research, the young couples were asked when they thought they would be in a position to purchase their own home. The most common reply was said to be, in at least ten years time. Respondents were also asked if they had managed to start saving for a deposit. A worrying 69% replied that they have not yet started to save.[1]
Mark Pearson, founder of the MyVoucherCode website, said that it is now “harder than ever for young people to get on to the property ladder.”[1] He went on to say: “Even though house prices are now fairly low, rent remains high and once you’re caught in the rental market, it can be incredibly difficult to get out.”[1]
Pearson urged young couples to seek professional advice to take advantage of some of the assistance on offer to them. He said: “There are plenty of schemes around at the moment which are aimed towards first time buyers, such as the NewBuy mortgage scheme, so people should definitely be looking into their options. Rent is dead money.”[1]
[1] http://old.lettingagenttoday.co.uk/news_features/Renting-costs-rob-couples-of-chance-to-buy