Private tenants paying more than buyers as market demand pushes up prices
People who rent homes in the UK private sector are paying more for their properties on a monthly basis than those who purchase their own houses, as demand in the rental market pushes costs ever higher.
According to a new study into UK property costs, published by the Department of Communities and Local Government (DCLG), the average rent in the private sector in the year ending 2016 was some £184 per week.
This is considerably higher than the £159 per week that was recorded for mortgage repayments in the same period, showing that those who live in private rented accommodation have far higher costs to cover when it comes to their property than those who have bought their own house.
Private tenants are also paying far more than social tenants for their homes, with average costs for housing association tenants paying some £106 per week and local authority tenants having to pay £95 per week.
Overall, it means that those who are buying their own home will spend an average of 18 per cent of their income on their house, while those in the private rented sector, on average, will see as much as 35 per cent of their earnings on their accommodation.
However, a growing number of people in the UK are still choosing to rent over buying a home, largely because of the freedom it gives them in their life and their career. The fact they don't own means they can move at short notice while climbing the jobs ladder.
The data is also somewhat skewed by the fact that London is more expensive than anywhere else in the country. Analysis of the DCLG report shows that while in London there is a huge gap between mortgage payments and rent, in the rest of the country, the difference is actually much smaller.