Rising house prices force people to rent for longer

Millions of couples are left facing being unable to afford rent due to house price rises outstripping wages, according to new research.

The data from the Guardian and Twentyci reveals the massive difference between people’s earnings and the cost of properties available to buy and rent.

Figures from the Office of National Statistics (ONS) reveal that, while earnings in England and Wales have doubled since 1997, house prices have increased at a much faster pace, multiplying by 4.5 times over the same period.

First-time buyers will often feel frustrated that they are paying rent that is bigger than a potential mortgage payment

The report from the Guardian also reveals more people are forced to rent for longer with the average age of a first-time buyer increasing to 34 in 2021-2022.

The report highlights the difficulty of a couple finding a place to rent in London. For a couple earning the median local wage, 63% of the capital’s districts are simply unaffordable.

Of the remaining 37% only 1% is affordable for the couple to rent. While the remaining 36% will use at least 20% of their combined wages in rent.

David Hollingworth, a mortgage expert with the brokers L&C, said the analysis highlighted the housing market’s huge barriers to entry, said: “Saving is hard enough but when trying to support a high monthly rental payment at the same time many will feel that they are running to stand still.

“First-time buyers will often feel frustrated that they are paying rent that is bigger than a potential mortgage payment but find it hard to meet the affordability requirements.”

He added: “Higher interest rates will only make home ownership harder and is also likely to exert upward pressure on rents as well.”

People are being priced out of the market altogether

It’s not just London that is facing the problem as most districts in the east, south-east and south-west of England are deemed unaffordable for local couples to buy or rent. In Bristol, the figure is close to a quarter, while in some larger towns such as Oxford, all properties are out of reach.

Francesca Albanese, the acting director of policy and external affairs at the charity Crisis, said: “The housing market is barely a market anymore. It’s a rat race. With the constant focus on seeing house prices increase, we have ignored what this research so clearly shows – that more people are being priced out of the market altogether.

“Huge swathes of Great Britain are now completely out of reach for the average family, particularly first-time buyers. House prices and rents have shot up while wages have remained stagnant, leaving countless families having to watch their dreams of owning a home go up in smoke.”

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