Controversial housing charity Shelter claims that private renters are collectively paying out £11 billion more a year – around £425 a month per household - on rent than they can actually afford.
The charity says its calculations use a "widely accepted measure of affordability" that rents should take up no more than 30 per cent of household income.
“For some people, that might be manageable but for those on lower incomes, even 30% will be too much” says Shelter.
It reaches its conclusions of an apparent overspend by comparing government data on average private rents and income.
Under this method private rents are typically 41 per cent of incomes on average; four in 10 families are spending more than 30 per cent of income on rent.
Shelter claims over a third of the £11 billion falls on the poorest one-fifth of households.
"When someone is forced to spend hundreds more than they can afford on rent each month, it's clear that private renting isn't working for everyone” according to Shelter’s chief executive Polly Neate.
The charity adds that the single best way to tackle high rents is by investing in social housebuilding.
But it warns: “With the number of social houses being built at its lowest for 70 years, homelessness spiralling, and 1.1m households currently stuck in limbo on the waiting list, it’s clear that our political parties must commit to building a new generation of social homes now.”
Generation Rent, a campaign group that is consistently critical of lettings...
Higher housing costs - including private sector rents - have reduced...
The likely general election is an opportunity for the government to...
Letting agents can beat the upcoming ban on Section 21 by...
The predictions game can be tricky. Sometimes you just don’t know...
Leading UK property auctioneer Bond Wolfe has broken through the £100...
Uncertainty triggered by the new Labour Government and taxation concerns that...
B-hive Block Management Partners Celebrates Major Milestone With Over 100 Businesses...
We’re absolutely delighted to announce that, after 10 years, we’re able...
You don’t have to simply accept things as they are when...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
Attention estate agents: if you're looking for a bumper Christmas bonus,...
%20(002).png)
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
.png)
I think we can all agree that the National Trading Standards...
Who are you and what does it say on...
Who are you and what does it say on...
Who are you and what does it say on...
Join the conversation
Jump to latest comment and add your reply
I NEVER used to increase rents on existing tenants and actually still have one that's been with me for well over a decade, still on the same rent as initially set.
Unfortunately it's really become impractical to continue with this policy because of S24. Oh yes, nearly forgot..... it's a policy that Shelter supports.
Tell this Polly sort to put them up in her house.
I am sure that the figure for most parts of the country are currently 30% or below and it's only London that has 39%.
And soon to have less properties to rent.
Let's get this right. They are paying out £425 more than they can afford! Well they must have fiddled their income to be able to rent a home above their income.
Any agent or landlord that does not do a credit and income check only have themselves to blame when things go wrong.
A good tenant is far better than a good rent.
Don't blame Private Landlords for the failing of the government.
Private means its a business.
However since the tax changes I make £250 A YEAR from my parents house. I have a cracking tenant. I am only hoping that I won't have any major expenses in the near future or I'll have no choice but to put the rent up. If Corbyn gets his wishes I will have to sell.
I can see homelessness rocketing under labour but landlords will be to blame for selling!
I note that Shelter don't mention the £10 billion annually in losses caused to LL by tenants most of which are rent arrears!
It is clear it is making far more business sense to sell up.
Having AST tenants is now just a PITA.
Please login to comment