Sunday was ‘freedom day’ for tenants.
According to Halifax, May 12, the 132nd day of the year, is when the average tenant in the UK will have earned enough to pay off the annual cost of their rent.
In London, the wait goes on – the Halifax calculates freedom day is June 25.
The equivalent freedom date for average UK mortgage borrowers was April 13.
Craig McKinlay, mortgage director at Halifax, said: “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.”
The date for tenants is calculated on the basis that all earnings from January 1 are devoted to rental payments until the annual costs have been paid in full.
Regionally, tenants in the north-west pay off their annual rent first, followed by the north-east and the east midlands.
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Comments
This would relevant if rent was the only things in life tenants had to pay for. As its not its totally irrelevant.
No wonder noone has any money to spend on anything else.
Whoever came up with the crazy idea that high house prices were a good for the economy.