Tenants saw their rent increase by nearly 12 per cent between 2010 and 2012, according to analysis of figures by PricedOut, the campaign for affordable house prices.
First-time buyers would be better off renting than buying a house under Help to Buy, according to new analysis of housing market figures by PricedOut, the campaign for affordable house prices.
Interest rates are so high under the Help to Buy mortgage guarantee scheme that the monthly repayments for the average first-time buyer in England and Wales with a 5% deposit are more expensive than the monthly rent on an average home – by between £26 in the North East and £296 in London.
This means that it would be cheaper for people with a small deposit to continue renting and use the difference to keep saving – unless house prices rise by more than is predicted. Depending on the region, house prices would need to rise significantly – by 6% per year in the North West, by 34% in the South West and by 28% in London – for it to be worth using Help to Buy now. Despite this, PricedOut warns that the government is putting families under pressure to get on the ladder by taking on unaffordable levels of debt.