Stipendium, the platform that simplifies life’s complex events, has revealed that while house prices continue to climb to record highs, homebuyers struggling to save are being hit hardest by the increase in household living costs, when it comes to the annual change of both energy and fuel.
House prices continue to climb and the latest Land Registry data on sold prices shows they’ve increased by a hefty 10.9% in the last year alone.
This means that an average 15% deposit has climbed by a further £4,075 in just 12 months, bad news for first-time buyers, in particular, tackling the task of obtaining homeownership.
At the same time, the cost of renting has also increased by 8.7%, costing £1,078 per month versus £992 per month a year ago.
But it’s the recent escalation of the cost of living crisis that is adding the most strain to a first-time buyer’s ability to save.
Stipendium found that in the last year, the energy bill price cap has climbed by 73%, with this cap now set at £1,971 per year compared to £1,138 – an annual increase of £833.
At the same time, fuel costs have climbed by 29% per litre for petrol and 36% per litre for diesel, meaning we’re now paying £0.36 and £0.47 more per litre at the pumps respectively.
Christina Melling, CEO of Stipendium, commented: “If there’s one measure that really demonstrates just how much the cost of living is climbing, it’s the fact that both energy and fuel cost increases have eclipsed house price growth by quite some margin over the last year. Quite some feat given the housing market has been running red hot pretty much throughout the pandemic.
Of course, the actual monetary increase associated with the increasing cost of homeownership is much higher, but it really does demonstrate the tough task facing homebuyers on all fronts, especially those without the financial cushion of a property to sell.
Not only is the deposit required to secure a home now substantially higher, but monthly rental costs have also climbed and the ability to save is being further squeezed by some huge jumps in general day to day living costs.”