Home » World News » Rental costs in private sector ‘at record’, LSL says

Rental costs in private sector ‘at record’, LSL says

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 540 other followers

Tweet!

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

David Orr, National Housing FederationL "We have a housing market that is not working"

The average rent paid by private tenants in England and Wales reached a new record high in July, of £725 a month, a letting group has said.

LSL, which owns the Your Move and Reeds Rains property chains, said average rents rose by 1% last month and were 2.9% higher than a year ago.

This was due to growing numbers unable to get a mortgage, it said.

The number of homes started by builders in England has also fallen again, to the lowest level for three years.

Government figures released on Thursday showed that only 21,540 new homes were started by builders in the three months to June this year.

That was 24% down on the same period a year ago and a 10% drop from the first three months of the year.

The Department for Communities and Local Government (DCLG) said: “Starts are now 54% below their December quarter 2005 peak, but 27% above the trough in the March quarter of 2009.”

‘Frustrated first-timers’
Continue reading the main story

Start Quote

Many will be wondering how much longer they’ll be able to stay in their home”

Campbell Robb
Chief executive, Shelter
House prices pick up over summer
Coping with Northern Ireland’s burst property bubble
HSBC pulls 2.99% mortgage rate
The dearth of new housing, allied to the rapidly growing population and continued rationing of mortgage funds for first-time buyers, has been a key factor behind the relentless upward trend in the cost of being a tenant.

LSL said rents were rising fastest in London and the South East, with the average rent in the capital now at £1,057 a month.

“The backlog of frustrated first-time buyers in the private rented sector showed no sign of clearing in July – in fact, it is still growing,” said David Newnes, of LSL.

“As lending to those without substantial deposits remains depressed, demand for rented accommodation can only go one way in the long-term – providing further upward momentum for rents.

“The rental market is also entering its summer peak, as recent graduates and those with new jobs begin to look for new accommodation,” he added.

More renters
With mortgage lenders now typically asking borrowers to put down a 20% or 25% deposit, many would-be home buyers have been in effect locked out of the home-buying market.

Continue reading the main story
Tracey Johnson, Norfolk

My partner and I have been renting for over a year.

We’ve been trying to save enough for a deposit, but it has been impossible.

It’s silly, really; we are paying more in rent a month than we would with a mortgage.

Renting is like living in limbo, we can’t do anything to the property, like decorating, because it is not our home.

We run the risk every six months of being moved on, which has now happened.

Another problem is that now we have been forced to move, we have to find another £2,000 for the initial rent deposit.

Living in rented accommodation is a nightmare, you can’t live normally.

As a result, many are still being forced to rent a flat or house when, ideally, they would have bought one in the past few years.

This has led to constant upward pressure on the demand for rented housing at a time when house building has been in the doldrums.

Housing charity Shelter described the rental market as “out of control”.

“What many forget is the devastating impact that every rent rise has on families who are forced to cut back further on food and other essentials.

“Many will be wondering how much longer they’ll be able to stay in their home.”

Figures earlier this year showed that owner occupation had fallen to 66% of all households in England, which was back to the level of 1989.

Meanwhile, the proportion of households renting their homes from private or public-sector landlords had increased, to 34% of households.

The effect of all this has been that the level of owner occupation has been dropping since 2005, after reaching a peak of 70.9% in 2003.

Supply squeeze
Separate figures have reflected how wages have failed to keep up with the cost of buying a home in England.

In 2001, the average price of a house was £121,769 and the average salary was £16,557, according to the National Housing Federation.

A decade on, the typical price of a property is 94% higher at £236,518, while average wages are up 29% to £21,330, the organisation which represents housing associations in England said.

“Ten years ago the average amount that you would have needed for a deposit was about nine months worth of salary. Now you need three years’ worth,” the federation’s chief executive, David Orr told the BBC.

“All of these things are indicators of a market where there’s not enough supply. And the simple answer is, we have to build more homes.”

Advertisements

25 Comments

  1. […] Rental costs in private sector 'at record' Global economy & finance journal. News which is beyond you. Home · About us · Contact · Distributors · Media partners · Home > World News > Rental costs in private sector 'at record', LSL says … https://kackerwords.wordpress.com/ — Sat, 18 Aug 2012 23:39:12 -0700 […]

  2. Thanks for the something totally new you have uncovered in your blog post. One thing I’d really like to touch upon is that FSBO connections are built after a while. By launching yourself to the owners the first saturday and sunday their FSBO can be announced, ahead of the masses begin calling on Wednesday, you make a good connection. By giving them tools, educational resources, free reviews, and forms, you become a good ally. By subtracting a personal desire for them plus their situation, you build a solid link that, on most occasions, pays off when the owners decide to go with a broker they know and trust – preferably you.

  3. PDF says:

    Dead indited subject stuff , be thankful for it for information .

  4. Thank you for sharing excellent informations. Your web site is so cool. I am impressed by the details that you’ve on this blog. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. You, my friend, ROCK! I found simply the information I already searched all over the place and just could not come across. What a great site.

  5. Emiliano says:

    I think your opinions are quite interesting, I enjoy reading what you write. Hope to hear more from you. Subscribed.

  6. barstuhl says:

    Hiya, I’m really glad I’ve found this info. Nowadays bloggers publish just about gossips and web and this is actually frustrating. A good site with interesting content, this is what I need. Thank you for keeping this site, I will be visiting it. Do you do newsletters? Can not find it.

  7. My sentiments are spot on with your observations, I also just started a new finance blog, you can see it at unsecured loans online what do you think of this version of wordpress and the theme.

  8. Luigi Fulk says:

    Thank you for the auspicious writeup. It in fidelity was after a entertainment account it. Glance advanced to added introduced agreeable beginning you! Nonetheless, how can we ensue in contact?

  9. is the key to building a loyal

    following to your web site. post insightful, authoritative, proprietary content on your site-consistently-and, in time, your web site’s analytics will show that your internet traffic is growing.what is there to blog about?blog about information that i…

  10. Hermes Birkin Bags Outlet

    Would you use a replica Hermes bag as a school tote? Comment below and tell me what you think!

  11. Perform the following to discover more about women before you are abandoned.

  12. They Previously used to Laugh at japan – Nowadays I laugh at all of them

  13. Thanks and Have fun with your buy! | Many thanks Adam, I understand now and that i am nevertheless awaiting an up-date about the shipping, until now I only gotten an e-mail saying the transaction was obtained and they will contact me using the transport facts, therefore i am nonetheless awaiting that…|i’m at the same time of buying a trailer i discovered on craigslist and was asking yourself the same, if the services are legitimate, thus i am hanging around to see the consequence of your financial transaction well before going forward with my own.|Have it these days LOL, I used to be dating my kid and spotted a vehicle using their company logo into it trying to find my house, then i lastly obtained it and everything seems as a way.|Have it right now Hehe, I became dating my boy and saw a vehicle making use of their logo about it looking for my home, therefore i last but not least obtained it and everything seems to be able, |Thank you Adam, I realize now and I am nevertheless expecting an update in regards to the shipping, to date I only received a message saying the payment was acquired and they will get in touch with the delivery details, then i am even now looking forward to that…|i’m during this process of getting a trailers i found on craigslist and was wondering the same. I am just now during the 7 day time guarantee phase.

  14. The Ten MostWild bag Secrets and cheats… And Ways To Use them

  15. Cease Protesting And Commence a personal men Promotion Instead

  16. Understand who’s discussing bag and also the key reasons why you ought to feel concerned.

  17. watch was just too simple in the past, these days it is virtually impossible

  18. The Primary Ways To Fully grasp watch And Also How You Can Join The watch Top dogs

  19. Perform the following to discover more about women well before you’re abandoned.

  20. awesome seo says:

    7qaToG Really informative article.Really looking forward to read more. Really Cool.

  21. check it out says:

    to be “ms eggerson the english teacher”

    to know how to use proper grammar but you do need to check over your content & use the spell check button.7) not responding to questions & comments: if someone takes the time to leave a comment or ask you a

  22. set it up again exactly the way

    it was. and even ignoring database crashes you might accidentally delete something. i know i do that all the time. you might delete the wrong comment, the wrong blog post and even empty the trash and never have a way to

  23. towards a common cause.often the first draft

    passes through many hands and eventually turns out to be very different from the initial one. it is a common adage, “two minds are better than one.” when several writers work together, the outcome is vibrant and exceptionally brilliant.through brain…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: