00:00Renting has long been the step before buying, but that step is becoming more expensive.
00:06Across Wales, higher monthly rents can leave people with less money to save towards a deposit,
00:12while first-time buyers are also facing higher purchase prices.
00:16For anyone hoping to move from renting into ownership,
00:20the sums are becoming increasingly difficult to make work right now.
00:24The rental market, it's subject to market forces, quite clearly, supply and demand.
00:31We have the consequence of people wanting to get out of the rental market,
00:36the suppliers, if you like, who buy the properties,
00:38because, of course, there's less money to be made for a variety of reasons.
00:42There are more regulations put on, which, of course, in and of itself is a good thing
00:47for the renter's point of view.
00:49But nonetheless, of course, it's all about yields, as the property market talks about.
00:55So, of course, if you're making less money and people disappear, fewer properties on the market.
01:00Also, of course, the fact that the property market in general is so much more uncertain,
01:05people aren't selling, there are fewer houses coming onto the market.
01:08Of course, we know that's a perennial problem.
01:10Houses are expensive at the best of times.
01:12So, of course, you've got a larger number of people trying to go after these properties.
01:17So, again, coming back to the rental market, or the rental market in particular,
01:22prices go up to reflect this increased demand and reduced supply.
01:27Here in Wales, Office for National Statistics figures show the average private rent
01:32reached £843 a month in July.
01:36That's up 5% in a year.
01:38In Cardiff, the average was £1,169.
01:44Swansea's average rent was £848 a month.
01:48At the same time, the average price paid for a first-time buyer in Cardiff
01:52reached £232,000 in June.
01:56That's up 2.4% year-on-year.
02:00That leaves many renters squeezed from both directions.
02:03Higher housing costs each month, while the amount needed to buy, remains substantial.
02:08The picture varies across Wales, but for people without family help or large savings,
02:14putting money aside for deposits can take longer,
02:16even when house prices are not rising especially quickly.
02:20Of course, what the government hope is, this is like an economic upturn
02:24and things get better and interest rates come down.
02:27But I don't suspect that's going to happen any time soon.
02:29So I think this is an issue that we're going to be dealing with for the very, very sensible future
02:33and may not even be solved this side of the next general election whenever it occurs.
02:38The pressure is not simply about the price of a house.
02:42For renters trying to buy, it's also about how much can be put aside each month after housing costs.
02:49And while the picture varies hugely by area and income,
02:53rising rents can make the journey towards a deposit that little bit longer.
02:58The pressure is not only about the price of a house.
02:58The pressure is not only about the price of a house.
02:58The pressure is not only about the price of a house.
02:58The pressure is not only about the price of a house.
02:58The pressure is not only about the price of a house.
02:58The pressure is not only about the price of a house.
02:59The pressure is not only about the price of a house.
02:59You
