FLAT SHARING GETS 1ST TIMERS ON THE PROPERTY LADDER

First time buyers can save a 15% property deposit in less than three years by flat sharing instead of renting alone, new research suggests.

According to a survey by website SpareRoom.co.uk, tenants renting on their own believe it will take them an average five and a half years of saving to be in a position to buy, and half say they are unable to save for their long term futures. However, the findings purport to show that considerable financial savings can be made by renting a room in shared accommodation, rather than renting a whole property.

          According to Spareroom, sharing would enable
          tenants to build up their own 15% deposits by 2016
          without the need for the government’s Help to Buy
          equity loan scheme.

          And if they do use the Help to Buy scheme to purchase new-build property, renters could save up the required 5% deposit in just 12 months by sharing.

Spareroom’s figures suggest that many people are turning to flat sharing. New flat sharer numbers have risen by 25% since 2011 and – as more people wake up to the financial benefits of renting by the room – flat sharing numbers are expected to soar throughout 2013.

Across the UK (excluding London) the average cost to rent a one-bed flat (including bills) is £8,394 per year, while the average cost of renting a room with bills included is £4,680.
With an annual saving of £3,976 (79%), Spareroom says it would take three years and 10 months to save up a 15% deposit for an average one-bed flat costing £101,253 if the renter moved into shared accommodation.

Matt Hutchinson, Spareroom director, said: “Most Brits currently renting have aspirations of home ownership but, because of the high cost of living, coupled with static wages and inflated property prices, they don’t believe it will ever be a reality. Many see themselves renting for the foreseeable future”.

Read the full article at 24dash.com