Those who rent pay out over twice as much of their income on their accommodation than homeowners spend on a mortgage, new figures reveal, a financial penalty for a generation unable to buy a home. With house prices still high, many put off owning their own home until they are cash-rich. A survey shows almost a third of first-time buyers are over 35. The changing demographic means those who rent are now tending to be an older and more affluent, with average incomes rising faster than those of homeowners. Private renters grew by 11.2% from 2010 to 2012. During the same period homeowners' incomes grew just 2.5%. Although the travails of the London property market are well known, the high cost of housing means that one in four Londoners are tenants."''A survey shows almost a third of first-buyers are over 35"''This pattern has spread all over the country. There is a widening gap in costs. Among owner-occupier households weekly mortgage payments were, on average, 19% of their gross weekly income. For private renters, weekly rent payments were on average 43% of their gross weekly income. In cash terms mortgage payments averaged £143 a week. This compares with average weekly rent payments of £160. The difference, say Shelter is £75 a month. We are beginning to see a trend with more first time buyers walking through our door as cash buyers due to mum & dad's financial support. With interest rates on savings at an all time low, it makes complete financial sense to invest in bricks and mortar in what is a thriving hot spot in London property market. Unfortunately for those that are not in this privileged position, renting is the only option and rent continuing to soar saving for a deposit to purchase a home will become even more difficult.'
