Homehunters spend £41,900 on rent before becoming first time buyers

Homeowners rent for an average of seven years before buying their first home, says new report

The lifetime cost of renting for those who choose not to buy a property is likely to be more than £296,000, according to new research from Santander Mortgages.

Homeowners spend an average of £41,900 on rent in the UK before buying their first property, its latest report suggests, with homeowners who rent prior to buying spending an average of seven years as a tenant, rising to 11 years or more for 15 per cent of these homeowners.

In addition to monthly payments, most private rental tenants are also asked to put down a security deposit which Santander says now averages £657 per tenant. Only 39 per cent of those currently renting received the full deposit back, with the average amount withheld by landlords standing at £130.

The study indicates that the average homeowner changes home every three years while renting.

Sean O'Grady: who will fix the UK's grotesque housing situation?

"Renting may appear to be the most financially viable option for some people," said Miguel Sard, Head of Santander Mortgages, "but in the majority of cases it isn’t the most cost effective. Over the years, payments made by rental tenants amount to a staggering sum, and these are not funds that you can recoup. The mortgage market is extremely competitive at present, with options available to suit most budgets."

Home loans have risen between December and January for the first time in 12 years, according to chartered surveyor e.surv, up nearly a quarter between the two months.

Richard Sexton, director of e.surv chartered surveyors, said: "January was something of an anomaly in the mortgage market. We normally witness a January slowdown in which borrowers choose to pay down Christmas debt rather than invest in property, but this year both banks and buyers have continued full steam ahead.

"Demand is strong from the top to the bottom of the market. First-time buyers are keen to lock into cheap deals and get on the ladder, especially with recent talk around a potential base-rate rise and the revision of forward guidance. And lenders are actively trying to keep volume high, to get business through the door before the Mortgage Market Review  puts a cap on the volumes they can process."

Discover more property articles at Homes and Property
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Guru Careers: Copywriter / Direct Response Copywriter

£20k plus sales linked bonus. : Guru Careers: We are seeking a Copywriter to j...

Recruitment Genius: Accounting Technician

£17000 - £18000 per annum: Recruitment Genius: A fantastic opportunity has bec...

Guru Careers: 3D Creative Designer

Up to £26k DOE: Guru Careers: A Junior / Mid-Level 3D Creative Designer is nee...

Recruitment Genius: Ecommerce Website Digital Marketing Manager - Fashion / Retail

£40000 - £60000 per annum: Recruitment Genius: You'll be joining a truly talen...

Day In a Page

Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

US betrayal of old ally brings limited reward

Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
VIPs gather for opening of second Suez Canal - but doubts linger over security

'A gift from Egypt to the rest of the world'

VIPs gather for opening of second Suez Canal - but is it really needed?
Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
The male menopause and intimations of mortality

Aches, pains and an inkling of mortality

So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

'How can I possibly be on the list with these writers I have idolised?'

Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

Bettany Hughes interview

The historian on how Socrates would have solved Greece's problems
Art of the state: Pyongyang propaganda posters to be exhibited in China

Art of the state

Pyongyang propaganda posters to be exhibited in China
Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

Vegetarian food gets a makeover

Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks
The haunting of Shirley Jackson: Was the gothic author's life really as bleak as her fiction?

The haunting of Shirley Jackson

Was the gothic author's life really as bleak as her fiction?
Bill Granger recipes: Heading off on holiday? Try out our chef's seaside-inspired dishes...

Bill Granger's seaside-inspired recipes

These dishes are so easy to make, our chef is almost embarrassed to call them recipes
Ashes 2015: Tourists are limp, leaderless and distinctly UnAustralian

Tourists are limp, leaderless and distinctly UnAustralian

A woefully out-of-form Michael Clarke embodies his team's fragile Ashes campaign, says Michael Calvin
Blairites be warned, this could be the moment Labour turns into Syriza

Andrew Grice: Inside Westminster

Blairites be warned, this could be the moment Labour turns into Syriza
HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

The mystery of Britain's worst naval disaster is finally solved - 271 years later

Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

'I saw people so injured you couldn't tell if they were dead or alive'

Nagasaki survivors on why Japan must not abandon its post-war pacifism
Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

The voter Obama tried hardest to keep onside

Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen