Third of UK’s private rented stock unaffordable says new report
A new report out today has revealed that most of southern England is now off limits to less affluent / low-income families wanting to rent a home.
The Home Truths Report, from the Resolution Foundation, is the first of its kind to give a comprehensive assessment of where less affluent families can reasonably afford to live.
The report reveals that :
- In 125 of the 376 local authorities in Britain, a couple with a net income of £22,000 a year and one child would have to spend more than 35% of their income to rent the least expensive two-bedroom property.
- In 10% of local authorities the same family would have to spend more than half of their income on rent.
- There are no local authorities where a low-income family can afford the rent on a two-bedroom property and meet the costs of a basic standard of living as defined by the minimum income standard, unless they qualified for housing benefit.
- A net income of £28,000 would leave a family priced out of 1 in 6 areas of Britain.
- Aberdeen, Exeter, south Cambridgeshire and Warwick are all places where private rents are more than 35% of net income for a low-income family.
Housing minister, Mark Prisk, said that the report was “alarmist”, “factually flawed” and ignored government measures such as the £1bn Build to Rent fund and £10bn in loan guarantees to build new homes specifically for private rent.
“It suggests that rents are soaring when in fact they have fallen in real terms,” he said. “And it fails to recognise that housing benefit provides a safety net which ensures that up to a third of private properties in most areas are affordable to low-income families.”
The BBC have also launched a housing calculator which allows users to see where they can afford to buy a house. CLICK HERE TO VIEW.
The calculator shows that a deposit of £10,000 is only enough to buy a two-bedroom home in 41% of local authorities (because a deposit of at least 10% is needed to get a mortgage), and even with a deposit of £50,000 central London and areas to the south and west of the capital remain unaffordable.
We are all constantly being told by the mainstream media that landlords are preventing first time buyers from “getting on the first rung of the property ladder” but at Landlord Referencing Services we truly believe that landlords are actually helping private buyers by driving property prices down. All successful landlords negotiate a good purchase price when buying to let (most estate agents would confirm this) and most landlords are not cash buyers, therefore have no commercial advantage over a private buyer.
What are your views?
- Are landlords helping to keep property prices down?
- Are landlords being scapegoated unjustly?
- What are your views on this latest report?