Rising rents price poorer working families out of a third of Britain
Average cost of renting a home in the UK reaches new high
Monday 15 July 2013
Lower-income working families looking to rent a home are now unable to afford properties in around a third of Britain.
According to a report from the Resolution Foundation, rents are now more expensive than the cost of monthly mortgage repayments on a property in almost half of the country.
Taking the example of a couple with one child and an annual net income of £22,000, the authors estimate where the family can afford to live. It concludes that in 125 of the 376 local authorities in Britain studied, the rent would eat up more than 35 per cent of the family’s £22,000 net income, making it unaffordable - in 38 of the 376 areas the rent would consume more than half of their monthly net income.
Even a middle income couple (with one child and a median net income of £28,000) looking for a private rent would find themselves priced out of one in six areas of Britain using the same 35 per cent measure.
The report shows that the high cost of renting affects not just London and the South East but includes black spots across the country such as Aberdeen, Exeter, South Cambridgeshire and Warwick in the West Midlands.
Vidhya Alakeson, deputy chief executive of the Resolution Foundation, said: "There is an urgent need to provide more affordable housing for people on low and middle incomes. They are increasingly unlikely to be able to afford the deposit to buy their own home so turn to the private rented sector. But here too they are now struggling to find decent, affordable housing. Incomes for this group are not likely to grow for at least the next five years and this will only make the housing problem more acute.
"Only an increase in the stock of housing for rent can improve the situation and the government should make this a strategic priority. People should not have to choose between decent, affordable housing and other essentials in life such as clothing, food or furniture – yet that is increasingly what is happening as housing costs escalate."
Campbell Robb, chief executive of Shelter, said: "Behind these figures are families across the country being crushed by the cost of their home. We see families paying out so much of their income each month that they’re forced to choose between putting food on the table, turning on the heating or paying their rent.
"Decades of failure to build the affordable homes this country needs has pushed us to crisis point. More and more people are being priced out of homeownership while housing waiting lists continue to grow, creating unsustainable pressure on private rents. Yet last month we saw the government actually reduce what it plans to spend on affordable house building.
"Shared ownership schemes are one of the best ways to offer low-income families an affordable place to live. We need to see more schemes that are affordable for low income families and that give them the stability and security that our current rental market sadly doesn’t provide."
Meanwhile, a second report from HomeLet suggests that the average cost of renting a home in the UK has reached an all-time high at £811 per month, after the average rental amount rose by three per cent during June. This month’s average figure is 5.1 per cent higher than the same time last year. When the Greater London figure is removed, the average cost of is £681 per month, an increase of 1.9 per cent from May 2013.
Andy Richards, HomeLet's Business Development Director, said: "During this time of year, we do generally see an increase in the number of people renting a new home, particularly students who move into higher yield properties, which therefore pushes average rents up.
"Although the increase in rental amounts shows how the private rented sector is still in demand, it also needs to be remembered that tenant income isn’t increasing at the same rate. This month’s data shows the average amount a tenant in the UK earns increased by just 0.8% to £28,000 per annum.
"Yes, rents are going to increase naturally – however, costs are rising at a rate much faster than both inflation and tenant income. With recent reports of increased tenant rent arrears, it appears that maybe those renting a property just cannot afford spiralling living costs."
A two-bedroom cottage with parquet floors, chunky beams and an open fireplace
A Grade II-listed home with six bedrooms, secluded landscaped gardens and views across Hadley Green
A Grade II-listed mansion with two apartments and a cottage, near Gretna Green
A three-bedroom Grade II-listed mews house with vaulted ceilings and roof garden
A spacious Grade II-listed family home with annexe and equestrian facilities among four acres of land in Itchingfield
A four-bedroom home with exposed brick walls and open fires in the picturesque village of Northill
A Grade II-listed property with five bedrooms and unique tower, overlooking Hastings Old Town
A charming five-bedroom detached family home, set within half an acre in Kew
A two-bedroom maisonette set on the top two floors of a period building, close to Kentish Town Tube.
Take advantage of the extra space provided by former stables and outbuildings at this five-bedroom farmhouse.
This three-bedroom Victorian terrace is near to Queen’s Road Peckham station, Nunhead station.
A five-bedroom modern house with terrace, swimming pool, Zen treehouse and large carp pond
An unexpected gem with four bedrooms, remarkable vaulted reception and a galleried study area
A five-bedroom house in one of Lymington's most sought after tree lined avenues, moments from the marinas and sailing clubs
A grand early 19th century B&B close to the historic harbour, with four en suite bedrooms
A four-bedroom, 17th century home with walled gardens, a landscaped terrace, cellar and open fires
A six-bedroom house with five bathrooms and four reception rooms spread over 4,000sq ft of luxury living space
A stunning three double-bedroom apartment with two decked terraces in the exclusive gated community, Bromyard House
A 10-bedroom period, family home amid beautiful surroundings in the centre of the Wentworth Estate in Longcross village
A stylish three-bedroom apartment with two bathrooms and private landscaped garden, moments from Fitzroy Square
A Grade II-listed Elizabethan barn with landscaped gardens, exposed elm beams and four bedrooms, all with lovely views
A six-bedroom family home, dating back to 1280 with four reception rooms, barn, swimming pool and tennis courts in Harwell
A spacious two-bedroom flat, refurbished to a very high standard with private landscaped garden, close to Kentish Town station
An exceptional two-bedroom apartment with balcony and underground parking in the centre of Richmond
A one-bedroom, luxury, duplex apartment in the grand landmark building, Imperial Hall
Run a fabulous boutique shop, live above it in a one-bedroom flat and let a second one-bedroom flat that comes part and parcel
A Grade-II listed, thatched cottage in Hundleby village, with five bedrooms, a coach house and three and a half acres
A spacious two-bedroom flat in the heart of Hoxton Square with wooden floors and roof terrace
A five-bedroom family home with stunning pool and gym complex set among two acres of land
A six-bedroom period house with heated swimming pool and a separate two-bedroom annexe cottage in Townlake, £795,000
A spacious and contemporary two-bedroom flat arranged over three floors, with garden patio close to St George Square, £600,000
A one-bedroom flat in a beautiful Regency building opposite the beach in Kemp Town, £190,000
A two-bedroom flat with London skyline views close to Surrey Quays. £395,000.
A seven-storey tower with three bedrooms and a stunning roof terrace. Guide price: £850,000.
A 16-bedroom country pile with nine reception rooms, four self-contained flats and a 13th century Peel Tower. £850,000.
A classic six-bedroom Victorian Manse house 10 miles from Edinburgh. £495,000.
John Lennon's childhood home in Liverpool to be sold at auction. Guide price: £150,000-£250,000.
A six-bedroom detached period property with secluded gardens, ample parking and a double garage in Rye, £675,000.
A large split-level property with three double-bedrooms and roof terrace, close to Crouch End Broadway, £625,000.
A charming barn conversion in the picturesque Cotswold village of Ilmington with three bedrooms, a detached garage, workshop and beautifully manicured gardens £675,000.
A three-bedroom new build, ground-floor flat with two bathrooms, close to Bermondsey tube, £445,000.
A three-bedroom house in an enviable new development moments from Oxshott High Street, with secluded garden and decked area, £385,000
A two-bedroom split-level flat with stunning south-west facing roof terrace in the popular Brondesbury Conservation Area, £549,950.
A charming 16th century, three-bedroom detached house in Bidborough with picturesque garden
A top-floor one-bedroom flat in the heart of Pimlico with a terrace providing spectacular views over London, £495,000.
A six-bedroom house, with three reception rooms, 1.5 acres of land and stables, £450,000.
A three-bedroom terraced house in the heart of Clapham Old Town with private west-facing roof terrace, £895,000.
elephant appealThe first 23 lots have now gone. But there are 22 more still up for grabs
comedy'Fresh Meat' star sees off stiff competition from Alan Carr, David Mitchell, Graham Norton, Lee Mack and Sarah Millican to win top prize
Beatles rush out 'bootleg' album to defy EU copyright law
Now that an oil trader's drinking has got him sacked, will we all have to make do with an afternoon latte?
Chiwetel Ejiofor and Idris Elba get nods for Best Actor, which no black Brit has ever won
Geoffrey Macnab reviews The Desolation of Smaug - the meat in Peter Jackson's Hobbit sandwich
peopleWhat advice would David Cameron give to his younger self?
Life & Style blogs
- 1 French café starts charging extra to rude customers
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 Australia incest case: Severely deformed children found in remote farming community after generations of inbreeding
- 4 Physicists discover 'clearest evidence yet' that the Universe is a hologram
- 5 Fox News presenter tells viewers it is a 'fact' that both Jesus and Santa Claus are white
£55000 - £60000 per annum + Benefits: Harrington Starr: Senior C# ASP.NET Deve...
Negotiable: Harrington Starr: QA Automation Tester FX Trading Platform(Ruby, ...
£25000 - £40000 per annum + Benefits : Harrington Starr: VB.NET SQL Developer/...
£45000 - £65000 per annum + Benefits : Harrington Starr: Senior Automation QA ...