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Business briefing: You’ll splash £63k in rent by time you buy a home

HOUSE hunters will shell out more than £60,000 in rent before they get on to the property ladder, a study has revealed.

Those who have bought their first home within the last five years had been paying an average of £625 a month to private landlords.

On average, they will be renting for almost eight-and-a-half years before buying their own home, spending £63,225 in rent during that time.

This means they will have forked out the equivalent of more than a quarter of the average £229,000 property in the UK.

Tim Beale, CEO at homebuilder Keepmoat Homes, said: ‘For many people, renting is an important first step towards home independence.

‘However, this research highlights the considerable cost of renting and it isn’t surprising to see that, for over half of people asked, they feel as if the dream of home ownership will never be possible.’

The study of 2,000 adults who have bought their first home in the last five years, or who are still renting, found three quarters believe it is ‘impossible’ to save for a home while renting.

Of those who have bought a property, they spent almost five years saving before putting down an average deposit of £24,033 on their property — more than 80 per cent of the average adult’s salary.

However, four in ten were able to lean on their parents for financial support when it came to their deposit, while a fifth relied on an inheritance.

A quarter even ended up moving back in with their parents to save on rent — and a similar proportion had considered it but were able to avoid doing so.

Mr Beal added: ‘In reality, home ownership can cost less than your rent.

“For example, with our average selling price of £156,000, the standard monthly mortgage repayments would make you approximately £100 a month better off than paying the typical £625 rent.’

Philadelphia and Volkswagen ads breached gender stereotyping rules

Don’t tell mum: Philadelphia ad portrayed dads as ‘hapless and inattentive’, said watchdog PICTURE: PA

A TV advert showing two dads leaving a baby on a restaurant conveyor belt has become one of the first to be banned under new rules against gender stereotyping.

The Mondelez ad for Philadelphia soft cheese ‘relied on the stereotype that men were unable to care for children’, the Advertising Standards Authority found after 128 viewers complained about it.

The ASA also ruled that a commercial for the Volkswagen eGolf ‘presented gender stereotypes in a way that was likely to cause harm’.

Banned: Car ad ‘likely to cause harm’ PICTURE: PA

It included two male astronauts floating in space, a man with a prosthetic leg doing the long jump — and a woman sitting next to a pram.

Under the new rules, which were introduced in June, advertising ‘must not include gender stereotypes likely to cause harm, or serious or widespread offence’.

Employment at record high but jobless up too

EMPLOYMENT is at an all-time record with the market boosted by higher numbers of working women and the self-employed, figures reveal.

The number of people in work rose by 115,000 to 32.81million in the three months to June, the Office for National Statistics said.

However, unemployment also significantly increased — by 31,000 to 1.33million for the quarter (a total of 3.9 per cent), the biggest rise since 2017.

Meanwhile, job vacancies fell by 20,000 to 820,000 — the lowest figure in more than a year.

BUSINESS BITES

■ POUNDLAND is launching a range of products for less than £1 — and will also test out selling items for more. The chain said its Midlands pilot was part of its transition from a ‘single price’ to ‘simple price’ retailer.

■ WATCHES Of Switzerland — the UK’s largest retailer of luxury brands Rolex, Cartier, Omega, TAG Heuer and Breitling — clocked up a 17.8 per cent rise in sales to £209.4million in the last quarter.

■ HOLIDAY giant Tui’s quarterly earnings have slumped 46 per cent to £93.6million. Fewer bookings, Brexit uncertainty and costs caused by the grounding of Boeing’s 737 Max 8 plane have been blamed.

■ DR MARTENS has stomped to an £85million annual profit on sales of £454.4million after the British shoe and boot brand enlarged its global footprint with 20 new stores. Web sales jumped 67 per cent in the year.

■ MICROBLOGGING site Tumblr is being sold to WordPress owner Automattic. The price is thought to be below $3million (£2.48million) — a far cry from the $1.1billion Yahoo!, bought by Verizon two years ago, paid for it in 2013.