First time buyers looking for the best mortgage deal and making every penny count
While mortgages have become cheaper and the Funding for Lending Scheme has been rolled out by government to banks and building societies, first-time buyers are facing a future where they may never be able to afford a house.
Those already established on the housing market are currently taking advantage of the cheaper mortgages and lower interest rates, the deposits required for a first-time mortgage are leaving many stuck renting.
Meanwhile, statistics have been released showing the increasing rent in the UK as landlords are hoping to make a quick and easy profit from renters. It has been revealed that six years out of the past seven saw rents increase in price.
Taking advantage of your savings
The Office for National Statistics conducted a report which found renting across the United Kingdom has risen by a further 1.3%. However, it is the hugely increased prices in London which have made the biggest impact, with the rest of Britain averaging out at 0.8% increase.
This equates to a monthly rent price rising from £500 per month to £506.50 per month. While this may seem like a low figure, but many properties in the capital see rents much higher than this for even modest abodes.
Rents have risen since January 2006 until November 2009 when they became even for a while. In 2010 until the following December, rent prices dropped momentarily, only to increase rapidly again the following year.
Meanwhile, the average wage has failed to correspond with these prices, leaving many out of pocket and even out of a place to live. It was 2008 which saw the biggest hike in prices, in correspondence to the financial crisis the majority of sectors in business suffered from.
None but the richest
The figures were taken from the Index of Private Housing Rental Prices, who measure the renting prices from private landlords, thus home associations, local authorities and other social housing sectors are not included in these figures.
It’s not only the English who are suffering from this increase of rent; the Welsh have experienced a 2.3% increase whilst the Scottish have seen an average increase of 2.2%.
While the economy begins to see signs of improvements, very few average Britons are feeling the benefits. With high inflation and continually rising rent prices, the average British person is not seeing any rising wages in correlation.
Matt Hutchinson of SpareRoom.co.uk has said: “Rents can only go so high before people are priced out of an area all together. This is especially true in London, which will become unaffordable for everyone but the wealthiest if current trends continue.”
However, mortgages may not be such an impossible dream if customers are willing to move away from mainstream banks.