Homeowners in the UK spent seven years and £41,900 renting before purchasing their first home, research from Santander Mortgages claims.
On average, homeowners who rent prior to buying spend seven years as a tenant before getting onto the property ladder, rising to 11 years or more for 15 per cent of these homeowners.
For those who choose not to enter the property market, the lifetime cost of renting is likely to be upwards of £296,000. That’s based on current private rental prices, which according to Santander’s study, is on average, £474 per tenant per month.
In addition to monthly payments, most private rental tenants are also asked to put down a security deposit, which currently stands at an average of £657 per tenant. Only 39 per cent of those currently renting received the full deposit funds back, with the average amount withheld by landlords being £130, or 20 per cent of the average initial deposit.
The study suggests that the average homeowner changed home every three years whilst renting, which means those who eventually purchased a property on average lost £311 of their deposit funds. Those renting throughout their lifetime and moving home with such frequency could see their landlords withhold an average of £2,201 throughout their renting lifetime.
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