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Two thirds of Britain ‘unaffordable to young renters’ claims BBC
A salary of £51,200 a year is required to rent a one bedroom home in London according to research conducted by a BBC data team.
Across England as a whole, with the capital included in the analysis, a gross annual income of £24,800 would be needed for the average one-bedroom rental flat. In Scotland £20,700 is needed and in Wales £17,600.
The calculations are made on the basis of people spending some 30 per cent of their income on rent; the BBC used population data from the government and rental data from Hometrack to make its calculations.
However, the analysis suggests that more than 30 per cent is spent by tenants on one bedroom properties in 65 per cent of British postcode areas.
The BBC found that outside of London the least affordable locations to rent were Epping Forest, Cambridge and Elmbridge.
Across Britain as a whole, the most affordable locations (taking 15 to 20 per cent of gross income to rent the one-bedroom property) were Argyll & Bute, the Scottish Borders, Northumberland and East Ayrshire.
In response to the survey the Residential Landlords’ Association policy director David Smith commented: “With a majority of under 35s living in rented housing, it is young people now facing the consequences of the supply crisis facing the private rental market.
“The government’s own data shows that across England there was a loss of 46,000 private rented homes in England in 2016/17, a result of tax increases on the sector. The demand for homes to rent is not expected to slow, whilst figures from the RLA warn of a net loss of 133,000 homes for rent over the next year.
“Given the scale of the housing crisis Ministers need to support the development of new homes to rent alongside all other tenures.”
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Original Source: Letting Agent Today.
Original Author: Graham Norwood.
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https://www.lettingagenttoday.co.uk/breaking-news/2018/10/51-200-salary-needed-to-rent-a-one-bed-home-in-london-claims-bbc
