Would-be first time buyers struggling to save the deposit and secure the mortgage they need to get on the property ladder are spending up to a decade in rented accommodation, it has been revealed.
The resulting surge in tenant demand means rents increased for the second month in a row in March and now stand at an average of £687 per month, according to LSL Property Services.
However, how much rent tenants have to pay varies across the UK.
The greatest monthly increases in rent were seen in East England and the South East, while the rates payable in London continue to surge ahead compared with a year ago.
However, rental costs dropped over the month in the South West, the West Midlands, Wales and Yorkshire and the Humber.
While rising rents are bad news for tenants, landlords are welcoming the increase in demand for their properties.
Unfortunately, many prospective first time buyers are being left with little choice but to rent while they try to buy their first house.
More mortgages requiring lower deposits aimed at first time buyers are being introduced by lenders.
HSBC and Yorkshire Building Society are amongst the lenders willing to lend to borrowers with just a 10% deposit, while Woolwich and first direct have mortgage deals open to those with a 15% deposit.
However, compared with a few years ago, the deals remain in relatively short supply.
Meanwhile, actually saving the deposit that is required to secure a mortgage deal also remains a challenge to most.
Savings rates remain historically low, while the economic downturn has made it more difficult for most to find the spare cash to put aside.
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