The cost of renting is still rising (and don’t mention affordability)
If you thought the soaring cost of life’s other essentials might be slowing house rental inflation, forget it.
In the 3 months to June monthly rents in the South East rose by an alarming 5.5% to average £1611*. That was faster than any other English region and contributed to a year-on-year rise of 12.1%.
The latest Rental Property Tracker* from Rightmove, a leading property website, also reports a long-term fall in the affordability of rented homes:
‘….. due to historically low interest rates, average mortgage payments on properties with two-bedrooms or fewer have risen by 13% in the last ten years, while equivalent rental payments on the same properties have risen by 40%.
The financial disadvantage of being a tenant is only too clear.
At Citizens Advice Epsom & Ewell, we reported in June that more of our housing clients ask for help with private renting than any other issue. The latest Rightmove data go a long way to explaining why.
Our online advice helps current and future tenants know their rights and see how the market works. But if they need one-to-one help they should drop in or give us a call.
Across the national Citizens Advice network our research and campaigns teams are continuing to make the case for reform. We welcome the government’s recent white paper which promises to reset the renting rules in favour of fairness and security.
But one way or another (and soon) ‘fairness’ should also mean real affordability.
* Rental Property Tracker, Q2 Report (April-June 2022), Rightmove, 14/07/22