Renters spend 40% of their income on housing

Renters spend 40% of their income on housing

It's more profitable to buy than to rent property in the UK, because tenants spend an average of 40% of their income for rental, according to ee24.com citing independent.co.uk.

A study conducted in 2012-13 shows that even homeowners having mortgage spend less, namely about 20% of their income. It is no wonder that two-thirds of tenants expect to acquire their own housing in the future, and only one in four is going to continue to rent an apartment. 

David Orr, the head of the National Housing Federation, said that buyers, especially younger ones, were displaced from the market because of overpricing. "With more young people stuck renting privately, they find themselves having to pay rising rents for short-term lets, that offer them no stability or the chance to put down roots for their future. The government must build more of the right homes at the right prices in the right areas."