When people are given no option, they don’t decide their fate. They are forced into it. And as the cost-of-living crisis worsens, people are becoming trapped as their expenses overtake their income. And for young people hoping to get onto the housing ladder, there seems to be no quick way out.
Cancelling Netflix subscriptions, buying a new kettle and even keeping the hob clean are energy saving tips that have mainly been directed towards the younger generation to save a few extra pence.
In 2021, an average deposit for a house was £53,935. So, by giving up Netflix, you would have to wait 408 years before being able to afford this deposit. And as food, fuel and bills increase, the option of becoming a homeowner is becoming more and more unattainable.
Data published on October 19 2022 (Gov.UK) found that the price of an average detached house in the UK has increased by 13.6% in price over a one-year period. The new price is a total of £295,903.
However, the National Living Wage has only increased by 6.6%, taking it to £9.50ph, which is extremely disproportionate to the rise in the cost of living.
The climbing prices of the housing market has led to more young people renting instead as it is the short-term more affordable option, rather than paying for a deposit.
Katie Twaites, Partner of Primrose Properties Letting Agents, says that the price of rented properties are increased annually by 3-6% and admits that buying a property is cheaper than renting.
But it is the deposits that are the biggest hurdle.
“I think the majority of people would prefer to buy but feel it is not an option for them. It is the combination of high rent and little savings that has been a problem for years.”
In 2021, ONS found that private renters could expect to spend 23% of their income on rent alone. But this renting crisis is actually hitting the younger demographic the worse.
A study between Dataloft and BBC found that 2 in 5 under 30s in the UK are spending over 30% of their pay on rent. Leaving them unable to save as much for a deposit.
Jack Moore, 25, has fortunately been able to live with his parents so far, which has saved him on paying high rent prices. However, he is soon looking to rent a house with his partner. “We want to move out together, but we aren’t even looking to buy as it’s not something we can even imagine affording right now.”
On the other end of the spectrum, Olivia Bremner, 23, has recently bought her first home with her partner, but believes that this would have been completely impossible to do alone.
“It would’ve taken me years to save enough to put down even a small deposit. So, I either would’ve had to stay with my parents or rent for 10 years.”
Not everyone has the option to live with their parents and Olivia recognises the vicious cycle that comes with renting.
“Rent prices are currently double our monthly mortgage payments and people that aren’t able to buy straight away get stuck as they aren’t able to save as much. We were so lucky that we were in a position to buy instead.”
But for those who are buying on their own, the struggle becomes twice as hard.
Daniel Slade, 30, has only managed to buy a house this year – despite saving for a deposit for almost eight years. “It [buying a house] always seemed to be just out of my reach, especially since I was buying alone. The rising prices kept putting houses out of my budget.”
He also went on to say that he feels investment buyers are creating "more competition by increasing house prices and creating rentals."
In 2020, the Department for Levelling Up, Housing and Communities estimated that 20% of all private properties in England were rentals. This significantly reduces the housing market and means that fewer houses are available to buy outright.
The UK is far from emerging on the other side of the cost of living crisis, with many unsure whether the market will continue to grow or soon crash instead. For now, the struggle remains the reality.
But who knows, maybe a new kettle is the answer to all our problems.
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