Renters without a property to sell are likely to be the worst demographic sector affected by the cost of living crisis according to an advice service.
Stipendium says that while inflation and particularly energy costs have hit everyone, those with a buffer of home ownership - especially after values have risen some 10 per cent in the past year - probably have a greater financial cushion.
It says that by contrast a first time buyer currently renting will have seen an average 15 per cent deposit climb by a further £4,075 in just 12 months.
At the same time, the cost of renting has also increased by 8.7 per cent, costing £1,078 per month versus £992 per month a year ago.
“But it’s the recent escalation of the cost of living crisis that is adding the most strain to a first-time buyer’s ability to save” says a statement from Stipendium.
The service says in the last year the energy bill price cap has climbed by 73 with this now set at £1,971 per year compared to £1,138 - an annual increase of £833.
At the same time, fuel costs have climbed by 29 per cent per litre for petrol and 36 per cent per litre for diesel, meaning people are now paying £0.36 and £0.47 more per litre at the pumps respectively.
The service’s chief executive, Christina Melling, says: “If there’s one measure that really demonstrates just how much the cost of living is climbing, it’s the fact that both energy and fuel cost increases have eclipsed house price growth by quite some margin over the last year.
“Quite some feat given the housing market has been running red hot pretty much throughout the pandemic … It really does demonstrate the tough task facing homebuyers on all fronts, especially those without the financial cushion of a property to sell.
“Not only is the deposit required to secure a home now substantially higher, but monthly rental costs have also climbed and the ability to save is being further squeezed by some huge jumps in general day to day living costs.”
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