October 17, 2011
The private rented sector is unaffordable for more than half of the UK’s ordinary working families, homeless charity Shelter has claimed.
Average private rents in 55% of local authorities in England are so high that many tenants just can’t cope in the current economic and employment climate. And in a sign that those priced out of home ownership are now struggling to meet the costs of renting, the Shelter Rent Watch has found that typical rents from private landlords were over a third of average take-home pay up and down the country.
From 1997 to 2007, rents increased at one and a half times the rate of incomes and Shelter has urged the government to take urgent action and stabilise a rental market that is out of control due to rocketing demand. It wants policies enforced that will bring rents more in line with average earnings.
According to research, 38% of families with children who are renting privately have cut down on buying food to pay their rent, while regionally it is more affordable to rent in Manchester, Liverpool or Birmingham than it is to rent in north Devon, north Dorset or Herefordshire.
Unsurprisingly, London boroughs are the most expensive, with the average rent for a two bedroom home in the capital (£1,360) almost two and a half times the average in the rest of the country (£568). And according to Campbell Robb, Chief Executive of Shelter, such disparity in price is likely to push families out of their hometowns.
"With huge differences in affordability across the country, there are now worrying signs that families are likely to be displaced by our out-of-control rental market,” said Mr Robb.
"Over recent years we have seen more and more people forced into renting, as high house prices and a lack of social housing have made it the only option for thousands of ordinary families. What we're seeing now is that renting is no longer the easy, cheap alternative to home ownership.
"Government must urgently consider how private renting can become a stable, affordable option for families, and not a heavy financial burden that makes parents choose between buying food for their children and paying the rent. This should be the wake-up call needed to finally take action to address our renting crisis."
