The research carried out by online rental website, SpareRoom.co.uk, showed that many renters are being crippled by the cost of living, with some having to fork out as much as two thirds of their income on rent alone.
Property rentals have rocketed in popularity since the credit crunch, with banks reluctant to lend and borrowers anxious about taking on more debt without job security, creating a negative cycle. This has led to a stagnation in the housing market but a sharp rise in demand for landlords, which has meant many have pushed up their prices. In many towns across Britain, it has now become more expensive to rent a property than to buy one. The average rent has risen to £712 per month, with tenants in London the worst off. Those renting homes in the capital have had to swallow an average 4.2% rise in just 12 months, now having to pay up £1038 per month.
The study found that nearly one in seven renters has to pay out two thirds of their income on keeping a roof over their head, leaving them little money for bills, food and other expenses…and certainly little left to save.
Nearly one in two of those aged under 30 still owe more than £10,000 from when they attended university, with 60% from this age bracket forced to use their meagre savings, simply to survive financially.
One in five of those taking part in the survey admitted they could not foresee a time when they could afford to buy their own home, whilst 17% said they thought it would be 10 years or more.