Private rents unaffordable in more than half of England

Thursday, 13 October 2011 09:11

Rental payments in 55 per cent of England's local authorities are unaffordable, a report has revealed.

New figures from housing charity Shelter have shown homes in these boroughs cost more than 35 per cent of median average local take-home pay, the level it considers affordable.

The statistics are a sign that those priced out of home ownership are now struggling to meet the costs of renting, the organisation stated.

It added that recent research showed 38 per cent of families with children who are renting privately have reduced their expenditure on food to allow them to pay their housing costs.

Shelter is calling on the government to take urgent action to stabilise the "out of control" rental market and develop policies to bring monthly payments more in line with average earnings.

From 1997 to 2007, rents increased at one and a half times the rate of incomes, it added.

Campbell Robb, chief executive of Shelter, commented: "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."

The Shelter Rent Watch report also showed that many rural areas are bearing the brunt of high rental charges coupled with low earnings.

It is currently more affordable to rent in Liverpool, Manchester or Birmingham than it is to do the same in north Devon, north Dorset or Herefordshire.

Meanwhile, the Yorkshire cities of Bradford and Sheffield are both more affordable than the rural areas of Ryedale and Richmondshire.

London boroughs are the most expensive, with the average rent for a two bedroom home in the capital (£1,360) nearly two-and-a-half times figure for the rest of the country (£568).

Use the Myfinances.co.uk comparison tables to find the best deal on a new mortgage 

• Tags:
• cost of living
,
• household budget
,
• mortgage
,
• news
,
• rent
,
• rental costs