Deposits from tenants next 10 years.
Deposits from tenants to rise twice as fast as salaries in the next 10 years
New figures have shown that the cost of renting deposit for homes is likely to reach £1,111 in the next 10 years.
According to a certain data put together by the Centre for Business and Economics Research, rental deposits are predicted to increase by 40 per cent by 2026.
The projected increase is the speed of anticipated growth in the typical monthly salaries. It raises concerns that similar price challenges could be shortly presented by the expense of renting to purchasing a property.
The cost of rental deposits for homes is likely to be more than £1,100 in the next 10 years.
In London, the typical deposit for home rental is forecasted to increase to £2,733 by the year 2026.
According to the report commissioned by comparison site money.co.uk, they have it that almost 70% of the normal monthly salary would be swallowed by a single deposit.
In London, the typical deposit for renting a home will be £2,733 by 2026, thus equaling to more than a month’s salary at 120%.
By comparison, in Scotland, the typical deposit for renting a home will reach £947, which equals 60 per cent of the renter’s monthly salary.
In Wales, it’s estimated to reach £731, equaling half of the typical monthly salary.
Rental deposits have been the equivalent of four weeks rent, however, this will rise to at least six weeks rent by 2026, as the report has it.
Cebr based its calculation on a combination of sources, including figures from the Office for National Statistics.
According to Hannah Maundrell, the editor in chief of money.co.uk, ‘The present booming property market means deposits will probably keep shooting upwards in the future, and we could well see six weeks’ worth of rent expanded to eight.’
She attributed this to demand and supply, with a shortfall in affordable houses continuing to push up rents as well as a growing population.
According to new research, one out of five home renters are spending less than 12 months at any given address.
This was made known by an independent research that identified a generation of ‘property drifters’ who are always moving out of one property into another, as a result of rent increases.
A survey of 1,000 renters carried out by QualitySolicitors discovered that 18% are spending less than 12 months at any given address, with some of them averaging almost 30 distinct addresses between leaving the family house and purchasing their own house.
The survey discovered that a total of 21% have moved out as a result of rent increases from their various landlords.
The other 87% has it that purchasing a property is not realistic without any significant financial assistance.
According to Richard Carter, a conveyancing specialist at QualitySolicitors, ‘It’s clear that rent hikes and sky-high property prices are seriously impacting young people’s chances of buying a home of their own.’