Rising rents across England is a key motivator for homeownership, a new survey from Share to Buy, the country’s leading property portal for first time buyers and affordable homeownership schemes, has revealed.
Key stats:
- 83% of budding buyers cited rising rents and increased competition in the rental market as one of their main reasons for buying a home.
- More than a third of first time buyers spend over 40% of their income on rent.
- Nearly one in eight first time buyers spend over 50% of their income on rent.
In the survey of over 2,200 users on sharetobuy.com, over 83% of budding buyers cited rising rents and increased competition in the rental market as one of their main reasons for buying a home. Highlighting a growing disparity between private rental costs and average salaries, 35% of those surveyed reported that they spend over 40% of their income on rent, while 13% of participants reported that over half of their earnings goes straight to their landlord. More than 60% of those surveyed said they believe their monthly payments will either stay the same or decrease once they buy a home.
From January to December 2024, average private rents in England increased by 9.2% to £1,369 per month – £115 higher than 12 months previously. Growth rates were highest in London, which saw average private rents increase by 11.5% to £2,200. The North West of England saw the second highest levels of annual rent inflation, with average rents increasing by 9.6%. In the heart of the North West, the average cost for private rent in Manchester reached £1,291. Rent inflation was lowest in Yorkshire and the Humber, at 5.4% in December 2024.
In comparison, properties listed on sharetobuy.com offer much lower monthly costs than the private rental sector. Currently, the average monthly cost for a one bedroom Shared Ownership home in London is £1,427, and this drops even lower outside of the capital – at an average of just £1,006 per month. Rental properties on the site, available through schemes such as Intermediate Rent and Rent to Buy, offer even further reductions; with the average monthly cost for a one bedroom rental available for £1,250 in London, and £860 outside of London.
Jade Turnstill, Head of Brand and Content at Share to Buy, comments: “Recent increased demand for rental homes and a shortage of housing stock has contributed to rapidly rising rents across the country. Once considered an affordable alternative to buying a property, renting privately is no longer a viable option for many.”
“Share to Buy is the home of Shared Ownership, Rent to Buy, Deposit Unlock and a number of other schemes designed to help aspiring homeowners find their space. Our recent survey highlights the need for more accessible, affordable housing options which can help buyers reduce their monthly costs.”
Share to Buy lists thousands of affordable properties across the country, including those available through Shared Ownership, Rent to Buy, London Living Rent and Discount Market Sale. For more information, visit sharetobuy.com.
Share to Buy also hosts a number of dedicated in-person events, designed to help aspiring homebuyers onto the property ladder. The next London Home Show, the capital’s largest first time buyer event, will take place on Saturday 26th April 2025 at the QEII Centre in Westminster and is free to attend. For those looking to step onto the property ladder in the North West, Share to Buy will be hosting the first-ever Manchester Home Show on Saturday 31st May.
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
