Residential Landlords Association (RLA)
Printable version

Today in politics: renters paying more, DWP update and deposits

We look at Halifax figures showing how much more renters are paying out per month v homeowners, we link to the DWPs new Universal Credit guide and data on deposit levels in the UK.

Renters paying more than homeowners 

Renters are paying up to 18% more each month than those who own their own homes in some parts of the UK, according to the latest Halifax Buying vs. Renting Review.

The gap is greatest in London, where homeowners save 18% on average (£3,727 annually), followed by the South East (17%), South West and Scotland (both 16%). 

Buyers across all UK regions save upwards of 10% when compared to renters in the same area, with the exception of Yorkshire and The Humber, where homeowners save just 3% on average – £235 per year.

The research looks at the housing costs associated with a mortgage on a three-bed home, compared to the average monthly rent of the same property type.

Russell Galley, Managing Director, Halifax, said: 

“The overall gap between home buying and renting is at its smallest margin for 10 years, but this masks some significant regional variations where homeowners are making some considerable savings on monthly costs.

“While Londoners stand to save the most from home ownership compared to renting, buyers in the South East and South West of England and north of the border in Scotland are also reaping the benefits. Buyers in two thirds of UK regions are saving upwards of £1,000 a year from living in a home they own, with the smallest saving for homeowners in Yorkshire and Humberside at £227.”

At a UK level, homeowners are saving 3% on average (£227 annually) with the gap reducing from 17% year-on-year since 2015, when buyers were saving an average of £1476 per year or £123 per month.

This has reversed from 2009, when it was buying that was more expensive, and renters saved on average £209 per year or £17 per month.

Universal Credit guide updated

The Department for Work and Pensions has published an updated guide providing details on how Universal Credit is paid and the budgeting support available through DWP and other organisations.

Rental deposits equal 15% of investment 

Research by rental deposit replacement scheme Ome shows that in 2019, just over £5.2bn was held in rental deposits across the letting sector.

This figure is calculated from 4.6 million tenancies seeing the average tenant spend £1,139 to secure a property.

Over the past year, total business investment in the UK reached £198bn.

Whilst the money used as traditional deposits equates to a small percentage of that, if it was available to the wider economy it would boost UK business investment by 2.6%.

The £5.2bn held in traditional deposits last year exceeds investment into a number of sub-industries.

Investment in the UK real estate sector over the past 12 months totals £35bn, and the sum of £5.2bn equates to 15% of this total investment. 

 

Channel website: https://www.rla.org.uk?ref=wg

Original article link: https://news.rla.org.uk/today-in-politics-renters-paying-more-dwp-update-and-deposits/

Share this article
Latest Campaign Updates Latest Research Updates Latest Research Reports
Join the RLA Latest News RLA PEARL

Latest News from
Residential Landlords Association (RLA)

Digital Transformation Doesn’t Exist