A new survey released shows that first time buyers will spend £31,300 on rent while saving enough money to buy their first home.
The survey conducted by ARLA concluded people moving out at the age of 18 will face 10 year of saving before having enough funds to buy a property of their own. The average amount of money spent on rent before being able to afford their own home in the UK is £55,900.
However these figures don’t seem to have put off first time buyers buying their first home.
North East estate agent, James Dryry, from Belvoir believes there has been an increase in the amount of first time buyers, he said: “Yes but, it varies in different area’s. But defiantly there has been an increase since 2011”.
He also added that the Governments ‘Help to buy’ scheme is enabling first time buyers to purchase their first home. The ‘help to buy’ scheme was set up by the Government to assist first time buyers in purchasing their first home with as little as a 5% deposit on homes up to £600,000.
The cost of renting in the northeast is the second lowest in the United Kingdom at £97 per week. The lowest region is Scotland at £92 per week and the highest is London at a staggering £227 per week. The average house price in Sunderland is £156,948.
However the survey is a cause for concern for local people who have not bought their first home yet.
Lora, 24 from Sunderland says “Yeah I would say it would put me off having to wait 10 years before I could afford it”.
Lora also expressed her concern about not being able buy a home in the future: “It would probably mean that I would not be able to afford my own home. I could also move aboard where the price of houses are not as expensive as the UK”.