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The ‘Money for Rent, but Not a Home” Loop
06 July 2017
Real Estate
More than half of the income of almost 14% of tenants goes on rents. Moreover, the proportion reduces to 30% for 43% of private renters, but it is still very high for those wanting to become house owners. Spending this much on rent equals on the long-term an incapacity to save money for a deposit to buy a new home.
The situation seems to be on a loop in England and Wales, at least for young people. The latest research shows that the number of people under 25 years old becoming owners reduced to half in the last 20 years.
The Local Government Association (LGA) suggests that building new affordable homes for rents and buying is the solution designed for a generation that cannot get out of the loop. Details in this article on Property Wire.
A generation is stuck in a rent log jam in England and Wales, unable to afford to buy