Yesterday (12 May) was “Rental Freedom Day” according to a study by the Halifax.
It found that tenants spend a month longer at work than homeowners to cover their annual housing costs. Tenants have to work 132 days to earn enough to pay off the annual cost of their rent. The equivalent date for homeowners paying off their mortgage arrived just over a month earlier, on the 10 April.
Craig McKinlay, mortgage director at Halifax, said: “Our research shows that today, if people had put everything they’d earned since the start of the year towards their rent, the average tenant would be rent free for the remainder of the year.
“Rental Freedom Day falls over a month after the equivalent day for homeowners due to the higher monthly costs of renting compared to the monthly cost of a mortgage. Once renting, it becomes even harder to save a deposit to buy a property but for those tenants who do want to own their own home, there are an increasing number of mortgages that require lower deposits now available to help support this.”
Regionally, the North East was the first to achieve Rental Freedom (8 April) this year, just ahead of Yorkshire (9 April), the East Midlands (10 April), and the North West (11 April). The first southern region to achieve Rental Freedom Day will be the South East (16 May), but those in London will have to wait more than half a year, and more than two whole months after the first region for Rental Freedom Day (5 July).