Renting means working an extra month
Filed under: Mortgages
Tenants spend an extra month paying their housing costs compared to homeowners according to Halifax research that shows that today, Sunday 12 May, is this year's Rental Freedom Day.
It takes UK tenants 132 days working to earn enough to pay their annual rent. Homeowners earn enough to pay off their mortgage a whole month earlier.
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Waiting for Rental Freedom DayRegionally, the North West was the first to achieve Rental Freedom (5th April) this year, just ahead of the North East (8th April), the East Midlands (13th April), and Yorkshire & the Humber (15th April).
The first southern region to achieve Rental Freedom Day will be the South East (17th May), but those in London will have to wait more than half a year, and more than two whole months after the first region for Rental Freedom Day (25th June).
Nationally, the earliest Rental Freedom Day occurs in Northern Ireland (27th March 2013) and was the only area to achieve this in March. For all the other home nations Rental Freedom Day doesn't occur until the second quarter of the year. In Wales the date is 11th April, just ahead of Scotland, where the date is 15th April.
Craig McKinlay, mortgage director, Halifax, says: "Housing costs are usually people's biggest outgoing every month, and our calculations show there is a significant difference between buying and renting. If you rent your home, then you will need to do about a month's extra work to cover the annual cost of renting compared to paying a mortgage."
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