Being a renter in the UK these days can be punishing, especially in the face of increasing rent prices, a cost-of-living crisis, and the dwindling lack of options to become a homeowner.
For many, rising costs can make it difficult to afford basic necessities like food, utilities, and transportation. The cost-of-living crisis has left renters struggling to make ends meet, with little relief in sight. To add to the struggle, the high deposit requirements for owning a home make it nearly impossible to make the leap to homeownership, leaving people stuck as tenants for the foreseeable future.
In recent years, the cost of renting in the UK has been on the rise. According to a recent report by the National Housing Federation, the average rent in the UK has increased by 20% in the past five years. According to a survey conducted by Keyzy, a rent-to-own provider, 78% of respondents had their rent increased in the past 12 months. The average rental increase was £195, or 20% on average, with the biggest rental increases reported in Birmingham. London-based respondents surveyed by Keyzy reported an average rental increase of 12% in the past year. This is putting a strain on many UK households, as they spend a larger proportion of their incomes on rent.
Here are some tips for renters who are struggling to make ends meet:
- Talk to your landlord. If you are struggling to pay your rent, talk to your landlord as soon as possible. They may be able to offer you a payment plan or other help.
- Look for ways to reduce your costs. There are a number of ways to reduce your costs, such as cooking at home instead of eating out, switching to a cheaper energy provider, and cancelling any unnecessary subscriptions.
- Taking this further, reviewing your entire monthly budget for essential and discretionary spending can free up some much needed cash.
- Get help from a charity. There are a number of charities and organisations that can help renters who are struggling, such as Shelter, Citizens Advice Bureau and Turn2Us. This is especially important if things get very difficult and you’re facing eviction.
The lack of options to become a homeowner is another challenge facing renters. With house prices still at historic highs and wages not keeping up with inflation, many people are finding it difficult to save up a large enough deposit. This is especially true for young people, who are often on lower incomes than older generations. Banks are consistently lending less to to first time buyers due to economic turmoil, increasing the gap between what is needed to buy a home and what is possible to borrow.
However, there is hope for those looking to break the endless renting cycle. Keyzy is a solution that helps renters become homeowners without a deposit while providing a fixed-rent solution for up to 5 years. Keyzy buys the home on behalf of the customer who can move into their future home immediately while having the option to buy the home from Keyzy later for the same price that Keyzy paid. Rent is fixed for the full duration of their lease and some if it goes towards reducing the future buy-back price each month.
Keyzy’s product gives renters the stability and security of homeownership, without the high upfront costs typically associated with it. This is a welcome relief for renters who have been struggling to find affordable and stable housing options in the current market.
Being a renter in the UK can be hard. However, solutions like Keyzy offer hope for renters looking to become homeowners by providing a fixed-rent solution and an opportunity to purchase their home in the future. By taking advantage of solutions like this, renters can finally achieve the stability and security that comes with owning their own home.
Empowering young professionals and First-Time Buyers with 'Rent to Buy'