Sixty four percent of all aspiring home buyers in the UK live in rental accommodation before being able to buy their very own first home. One of the biggest financial hurdles faced by first time home buyers is saving up for deposit. High percentage deposits are indicated as the biggest barrier for new home buyers, forcing them to seek other solutions as only forty one percent of the analysed group receive any financial assistance, whilst the remaining sixty two percent of people live in with their parents or other family members.
Saving up for first time home buying deposit is also a challenge for most people as they have to pay their current rent, and put money aside for the much needed deposit. The average rent across the United Kingdom currently sits as 681.7 pounds per month. Twenty five percent of all new home buyers living with their parents do not pay rent to mum and dad, they have stated that this money is being put towards their deposit instead. On the other hand, fifty two percent of all potential homebuyers (living in family accommodation) do pay rent to their family, furthermore twenty two percent of all first time homebuyers contribute some amount to the weekly food and bill expenses of the household. There are also others who simply pay whatever they can afford to their family landlords on a monthly basis – they are the people who are in no particular rush to leave the family nest just yet.
Buying a first time home is a big deal for most people, as there so many important considerations, commitments and decisions to be made. The many additional yet necessary expenses that go hand in hand with buying one’s first home are not to be ignored, even something mundane as finding and securing the services of a specialised removal company should be factored in before making any major steps and financial commitments. Bank representative say that financial institutions are open to actively working together with first time home buyers to help them realise their dream. Indeed a clichéd statement, but there are certain financial tools out there which do help aspiring home buyers overcome some hurdles to buying a house.
At the same time, about five million tenants across the country have no feasible plan to cover their rental expenses should the fall ill or be injured, therefore out of work for up to three months – this could be worrying. Another issue is moving from one rented p[lace to another with additional expenses like end of tenancy cleaning. Recent cuts to housing benefits could also expose such people to more risk. There are other alarming figures as well such as – twenty four percent of all employed renters know a person who struggles with their rent. Overall, thirty four of all tenants do not know how they can cope if unable to pay their rent. 60% of those who did have a contingency plan in place, said they could only afford about three months’ worth of rent covered by their savings. The planned cuts in housing benefits are expected to strain an already strained renters group even more.