Tenants have rent covered
It takes tenants a month longer than homeowners to cover annual housing costs, with the equivalent date for homeowners paying off their mortgage standing at April 10, over a month ago.
The date the average tenant earns enough to potentially pay off their rent has been dubbed ‘Rental Freedom Day’.
Rental Freedom Day is unchanged from 2013.
Craig McKinlay, mortgage director, Halifax, said: “Rental Freedom Day falls over a month after the equivalent day for homeowners due to the higher monthly costs of renting compared to the monthly cost of a mortgage.
“Once renting, it becomes even harder to save a deposit to buy a property but for those tenants who do want to own their own home, there are an increasing number of mortgages that require lower deposits now available to help support this.”
The North East was the first to achieve the milestone on 8 April, while the South East will achieve it on 16 May.
Renters in London have to wait until 5 July for Rental Freedom Day.