Young adults say they are trapped by rental costs

Friday 25th May 2012

A discount search website which noticed an increasing number of searches for mortgages requiring 5% deposits was prompted to do research among its younger users.

MyVoucherCodes found as a result that most young co-habiting couples feel stuck in rental accommodation, spending an average of £6,900 a year on rent.

A total of 1,672 young adults aged 21-25 were polled, each of whom was in a co-habiting relationship and had been living with their partner in the same rented accommodation for at least two years.

When initially ask if they felt ‘stuck’ in the rental market, 76% of those taking part said ‘yes’.
 
Asked how much rent they were paying, the average answer was £575 per month. When asked if their rent had gone up since moving in, 64% of those taking part said ‘no’.
 
With all respondents having lived with their partner in the same rented accommodation for at least two years, that would mean that the average couple in the UK in these circumstances would have spent at least £13,800 on rent so far.
 
All respondents were asked when they thought they would own their own house, either alone or with their partner, to which the most common answer was ‘in at least ten years’ time, if not longer’.

When asked if they were managing to save any money towards a deposit for a house yet, the majority of those taking part (69%) said ‘no’.
 
Mark Pearson, founder of the website, said: “It’s harder than ever for young people to get on to the property ladder. 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. Your money goes on rent every month, leaving you with little to save towards a deposit.
 
“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.”