Figures from the National Housing Federation (NHF) show that tenants in the UK typically spend over 39% of their income on rent, compared with the European average of 28% with Germany and Holland being 50% cheaper than the UK.
17% of UK residents rent their properties and are now facing higher costs of living.
The federation which represents housing associations said that renters were now less secure in their homes due to shorter tenancies.
However, homeowners are now enjoying better mortgage deals. The British Banker’s Association (BBA) has said that there is “fierce competition” between lenders which means there are currently some great mortgage deals available.
Low interest rates and lack of available properties on the market are contributing to lenders lowering the cost of mortgages to tempt potential buyers.
At the height of the housing boom in 2006, 1.7 million homes were sold in the UK. This fell to 848,000 in 2009 but rose to 1.2 million in the past year. However, in recent months property sales have fallen to below 100,000 a month.
There is now an increasing contrast between the finances of renters and buyers, with some buyers worrying about their ability to get on the property ladder.
Among people where renting homes is their only viable option, there is a concern over the rising cost of housing and living and the impact that might have on their finances and outstanding debts.
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