'I earn £36k but I can't afford to buy a house'

An important development from the financial markets: 'I earn £36k but I can't afford to buy a house' 2 days ago Share Save Add as preferred on Google India Pollock Wales social affairs correspondent Daniel King says it is "impossible" to buy a house unless you inherit money and that hardworking people in their twenties and thirties are overlooked Daniel King grew up with the idea that if you work hard, get a good education and a job, you would be able to buy a house. However, despite working between 50 and 60 hours a week, he said saving for a deposit to buy a house on a single income was impossible and he was "trapped" in a private-rented flat. Research from housing charity Shelter Cymru said the private rented sector was unaffordable for most people in Wales.

It said the only people who can confidently afford it were households with two full-time earners, with two or fewer children - and access to low cost childcare - who want to live in mid-Wales. Landlords said their costs had increased too and said better data was needed. King got in touch with Your Voice to tell us he was concerned about the rising costs of housing.

Economic Details

The 36-year-old earns between £35,000 and £36,000 a year as a HGV driver, taking home between £2,300-£2,400 a month after he pays for things like tax and National Insurance. He privately rents a one-bedroom flat in Grangetown, Cardiff, for £900 a month, which he describes as "a good deal". About 65-70% of his income is spent on rent, council tax and household bills, and he saves a small amount each month but spends very little on non-essential items.

"I'm a very simple individual. I don't have a lot of expenses. "I work hard and just want to be able to call a place mine, which I don't think I could do.

" First-time buyers, priced out of Wales' fastest-growing city, say they're 'losing faith' My tenant owes £15,000 in rent, but I can't get them out of the property He said he was eligible for a mortgage and could pay the monthly payments, but saving for a deposit was impossible. "It's not do-able, not for a single person. "It's impossible to get onto the housing market unless you have generational wealth," he said.

Analyst Views

King said rent prices in the area had increased over the years, and during Covid he was only paying around £500 a month. He added that hardworking people in their twenties and thirties had nothing to show for it and were "completely overlooked". Official data showed that rent was affordable across Wales, except in Cardiff and the Vale of Glamorgan.

But Shelter Cymru said up to half of the 20,000 people they helped a year had issues with the private rented sector, with many saying they could not afford their rent. It created a new definition of affordability and said rent, council tax and basic utilities should cost less than a third of a person's income. They specifically looked at how affordable rent was for people whose take home pay was between £2,000 and £2,300 a month.

Financial markets are tracking the development closely as investors assess the likely impact.