Research from Santander Mortgages has shown that homeowners spend an average of £41,900 on rent before they manage to save up the money for an initial deposit to buy their own home, with many renting for around seven years.
Instead of renting in order to save enough money for a deposit, the research shows that a great majority of people are caught in a trap - a substantial part of their income is going towards rent. Current rental prices stand at an average of £474 per month. It's no wonder that many who have the option are turning to the Bank of Mum and Dad or are deciding to continue to live in the family home to save money.
Funnily enough, those that never manage to get on the ladder, or perhaps choose to continue to enjoy the flexibility of renting, actually end up paying more than the cost of a house to landlords. Lifetime tenants will be likely to pay upwards of £296,000 in rent based on current prices.
Miguel Sard, Head of Santander Mortgages, said: "Renting may appear to be the most financially viable option for some people, but in the majority of cases it isn't the most cost effective. Over the years, payments made by rental tenants amount to a staggering sum, and these are not funds that you can recoup.
"The mortgage market is extremely competitive at present, with options available to suit most budgets."
With mortgage interest rates so low at the moment, the Help to Buy scheme boosting availability of 95% mortgages, and rental prices rising, there's no better time to start thinking about saving for a deposit. If you'd like advice or assistance in finding a suitable mortgage, feel free to contact one of our agents at [email protected].