Tenants paid a record £51.6bn last year in rent to private sector landlords - more than twice the total bill a decade ago thanks to rising rents and the fact that more people are renting, often because they cannot afford to get a foot on the property ladder.
For many existing renters, owning their own place can sometimes feel like a bit of a pipe dream. But one landlord is looking to help change that.
Tenants of property developer and landlord ThamesWey can now benefit from a new Earn Your Deposit scheme deigned to help people go from renting to owning their own homes.
Under the scheme, ThamesWey sets aside money each year based on the size of property rented – currently between £1,600 and £3,600 – up to a maximum of £80,000.
Mark Rolt, chief operating officer at ThamesWey, said: “Saving for a deposit is difficult when you’re paying rent every month. Earn Your Deposit is a fantastic new scheme that helps our tenants get onto the property ladder.
“ThamesWey is committed to building sustainable communities. That means providing homes for people of different circumstances and financial means.
“Some people like to rent long-term and others want to buy and get on the property ladder. Helping people become home-owners keeps the property market healthy by increasing the number of buyers across different price levels.”
After a minimum of two years in the scheme, ThamesWey tenants can use the lump sum they have accumulated towards a deposit to get on the property ladder rather than continuing to rent.
The money accumulated under Earn Your Deposit can be split between shared tenancies.
If tenants move to larger or smaller properties, their lump sum moves with them as long as there is no break in ThamesWey tenancy.