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Young adults expect rent to be biggest expenditure of their lifetime

A third of adults between the ages of 18 and 34 believe rent will be their biggest ongoing expenditure in their lifetime, according to a survey conducted by iReach for protection provider Royal London Ireland.

That is double the number for other age groups, according to the report which found that people within this age expect to have to rent into the future as they do not see themselves being able to buy a home.

Other age groups expect mortgage repayments to be the biggest expenditure over their lifetime, the survey of 1,000 adults indicates.

The findings come following a recent Central Statistics Office report which show that the median age at which people are now taking out a mortgage is now 36.

The iReach survey found that 35pc of adults aged between 25 and 34 believe rent will be their biggest ongoing expenditure in their lifetime.

Across all of those surveyed, half said they believe the cost of housing will be their biggest ongoing expenditure over the course of their lifetime.

When this is broken down, just under one third said their biggest ongoing expenditure is likely to be their mortgage repayments.

Almost a fifth said their rent payments would be their biggest lifetime expenditure.

Outside of the cost of housing, survey respondents said raising children was the next highest ongoing expense. This is particularly the case for those in the 35-44 age categories. This was followed by the ongoing costs of paying utility bills like gas, electricity and broadband.

Interim head of proposition at Royal London Ireland Karen Gallagher said: “With rent and house prices in Ireland on the rise, it’s not surprising half of the people we surveyed believe the cost of housing will be their biggest ongoing expense during their lifetime.”

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