It’s no secret there are plenty of hurdles facing first-time buyers. One of the biggest challenges is saving up enough of a deposit, while inevitably forking out for rent at the same time.
Clydesdale and Yorkshire Banks’ annual First Time Buyers research highlighted this among some of the challenges faced by wannabe homeowners as they struggle to take that first step on the property ladder.
According to the research, 64% of aspiring homeowners rent a property before they pick up the keys to their very own property.
Renters are less likely to get help from family, the research found, with only 41% getting any financial assistance compared to 62% of those who live with parents or family members.
Building up a deposit is difficult for those who pay rent at the same time when they’re forking out an average monthly rent at £681.70, according to the research.
Of those who live with their parents before buying their own property, one in five (21%) don’t pay rent, with a third of these wannabe homeowners put this cash towards their deposit instead.
However, 52% do pay a fixed amount every month to their family landlords while 22% contribute towards food and bills. Others simply pay what they can afford on a monthly basis.
The research also found that those in rented accommodation find getting on the property ladder more stressful as 28% admit they put themselves under pressure, compared to 16% of those who still live with their parents and are in less of a rush to fly the nest.
Steve Fletcher, head of customer banking networks at Clydesdale and Yorkshire Banks, said: “At Clydesdale and Yorkshire Banks we understand the many different challenges that aspiring homeowners can face when they are hoping to invest in their first property.
“Buying a first home is one of life’s most significant financial milestones and the banks can work with the individual needs and circumstances of potential first time buyers to help make their dreams of becoming a homeowner a reality.”
Last week, Bilgo reported that research by landlord insurance provider Direct Line for Business had revealed how rental turnover varies depending on where you live.
According to the research, British renters spend an average of just 18 months in a property before they get the itch to move.
It found that Cardiff has the highest turnover of renters, with the average property being vacated less than a year after being filled, while Leeds and Bristol also have a high turnover of tenants, at 12 and 14 months respectively.
Birmingham renters are likely to stick around for the longest, staying in the same property for an average of two years and four months.