Households in Rentals More Likely to Live in Poverty than Homeowners
The cost of mortgage repayments are now lower in most instances than rental fees. Yet, households are finding it hard to gain a mortgage and move out of buy to let properties. According to a charity report by Joseph Rowntree Foundation (JRF), the rising cost of rental properties will put future generations into poverty level and the result will be more people requiring housing benefits from the government.
The report revealed that by 2040, those that rent will be more than twice as likely to be living at poverty income level than homeowners. Rental costs are expected to rise 90% which is twice as fast as income.
This pushes a need for more affordable housing to be built in the UK.
Julia Unwin, chief executive of JRF, said “These stark findings are a wake-up call for political leaders. After decades of failing to build enough, those in power have a responsibility to act now to build more genuinely affordable homes.
“We need a clear strategy that builds the homes we need in the right places and avoids locking low income households out of affordable homes.
“This is about more than frustrated aspirations of home ownership from Generation Rent: the reality facing many people is a life below the poverty line because of the extortionate cost of keeping a roof over your head.
“Addressing the rising cost of housing is crucial to tackling the high levels of poverty in the UK.”
First time buyers have been disappearing from the housing market. It is thought that despite the low cost mortgage deals on the market they have chosen to walk away from the higher house prices and wait until sellers are more aggressive with their pricing.
Homeowners have turned out more for deals as cheap interest rate remortgages but demand is still weak when considering the great products being offered by lenders.
For those considering a remortgage it is a simple process to seek an online quote to discover if repayments could be cheaper. The online quotes are non-obligatory and private. With only a minimal amount of information and few minutes of time, a homeowner could find a great remortgage deal.