First-time buyers in the UK spend £163,047 on rent before homeownership

Recent research reveals that prospective homeowners in the UK are spending significantly more on renting, with a 40 per cent increase over the past decade, complicating efforts to save for a deposit and enter the property market.

First-time homebuyers in the UK now face significantly higher costs in renting before they can afford to purchase a property, with recent research revealing they spend an average of £163,047 on rent prior to buying. This figure is a substantial 40 per cent increase compared to a decade ago, when the average rent expenditure was £116,427. The rise is primarily driven by soaring rents and the climbing cost of living, which are seriously impeding prospective buyers’ ability to save for a deposit.

According to data from specialist mortgage lender Perenna, the additional amount paid in rent today represents an increase of approximately £46,621 since 2015 alone. When the average house price rose to £270,000 in July, the deposit needed — typically 10 per cent — was around £27,000. However, the sizeable sums paid in rent could be equivalent to a 60 per cent deposit on the average home. Despite this, mounting rental costs combined with affordability restrictions on borrowing limit many from stepping onto the property ladder. For example, mortgage rules often cap borrowing at 4.5 times a buyer’s salary, making homeownership particularly difficult for single purchasers.

Perenna’s founder, Colin Bell, highlighted the structural challenges young people face in the housing market. He explained that while some choose to rent by preference, many are trapped in an increasingly unaffordable rental cycle without building equity. Unlike mortgage payments—which help buyers acquire ownership and creditworthiness—rent payments offer no investment return, effectively locking tenants out of wealth accumulation despite often exceeding monthly mortgage costs. Bell warned that the current market infrastructure encourages long-term renting rather than homeownership, calling for more financial mechanisms and low-deposit mortgage options to help young people onto the ladder.

The number of years first-time buyers rent before purchasing has increased as well, from an average of 11.4 years a decade ago to 12.8 years today, assuming renters start at 21. This shift reflects deeper affordability issues; official figures show the average private monthly rent rose by 5.7 per cent in the year to August, reaching £1,348 nationally. Regional differences are stark: London sustains the highest rents at £2,253 per month, while the North East has the lowest average at £745. Wales experienced the largest annual increase at 7.8 per cent, and England holds the highest average rent overall at £1,403.

Tenant advocacy groups are pressing the government for intervention. Ben Twomey, chief executive of Generation Rent, expressed concern that rents have risen faster than wages, increasingly burdening tenants. Twomey called for rental protection measures analogous to energy and water bill caps, urging devolved authorities to have powers to limit rent increases regionally.

The trend of escalating rent expenses predates recent years. Research from 2016 by the Association of Residential Letting Agents (Arla) found first-time buyers spent an average of £52,900 on rent before buying. London renters faced the highest costs at £68,300, compared to £31,300 in the North East, illustrating a persistent North-South affordability divide. Earlier data from 2014 indicated homeowners spent around £41,900 in rent on average and often rented for seven years before purchasing. Over time, these figures have grown sharply, underscoring intensifying difficulties for young buyers amid rising rents and house prices.

The implications are clear: many renters are effectively funding landlords for years instead of building equity in property, reflecting systemic barriers in the UK housing market. The combination of high rents, borrowing limits, and savings challenges creates a prolonged hurdle for homeownership, prompting calls for policy reforms to equalise opportunities and financial supports for first-time buyers in regions across the country.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
7

Notes:
The narrative presents recent data on first-time homebuyers’ rental expenditures, with figures from 2015 and 2016. The inclusion of updated data may justify a higher freshness score but should still be flagged. The report references a press release from Perenna, which typically warrants a high freshness score. However, the presence of earlier versions with different figures and dates indicates potential discrepancies. Additionally, the narrative has been republished across multiple outlets, including low-quality sites and clickbait networks, which raises concerns about originality. Some of these republished versions date back more than 7 days, further highlighting the issue of recycled content.

Quotes check

Score:
6

Notes:
The report includes direct quotes from Colin Bell, founder of Perenna. A search reveals that these quotes have appeared in earlier material, indicating potential reuse. The wording of the quotes varies slightly across different sources, suggesting possible paraphrasing or selective quoting. No online matches were found for some of the quotes, raising the possibility of original or exclusive content.

Source reliability

Score:
5

Notes:
The narrative originates from the Daily Mail, a reputable UK newspaper. However, the report relies heavily on a press release from Perenna, a relatively new mortgage lender with limited public presence. Perenna’s website provides basic information but lacks extensive details, which may affect the reliability of the information presented. The absence of independent verification of Perenna’s claims further raises concerns about the source’s reliability.

Plausability check

Score:
7

Notes:
The claims about rising rental costs and their impact on first-time buyers are plausible and align with broader housing market trends. However, the narrative lacks supporting detail from other reputable outlets, which diminishes its credibility. The tone and language used are consistent with typical corporate communications, suggesting a promotional intent. The structure includes excessive detail unrelated to the main claim, such as extensive data on regional rent variations, which may serve as a distraction tactic.

Overall assessment

Verdict (FAIL, OPEN, PASS): FAIL

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary:
The narrative presents recycled content with potential discrepancies in figures and dates. It relies heavily on a press release from Perenna, a relatively new and less verifiable source, which raises concerns about its reliability. The lack of supporting detail from other reputable outlets and the presence of excessive or off-topic detail further diminish its credibility.