Finance News

Most Unaffordable Places to Rent are Oxford, Brighton and Bath

Em Morley - December 6, 2014

Other than London, the most unaffordable places to rent are Oxford, Brighton and Bath, according to the National Housing Federation1

Three Rivers in Hertfordshire is now the most expensive place outside of London to be in the private rental sector. Rent here costs more than half of people’s wages.1

Other areas, such as Oxford, South Bucks, and Brighton are now more unaffordable than London’s Greenwich and Lewisham. Renters spend over half of their earnings on rent, before bills.

This research comes after official figures indicated that private sector tenants currently spend twice as much of their wages on their homes, compared to owner-occupiers.

Most Unaffordable Places to Rent are Oxford, Brighton and Bath

Most Unaffordable Places to Rent are Oxford, Brighton and Bath

Other areas seeing renters struggle are the South West, the East of England, and Yorkshire, where rent takes about 40% of people’s wages in Exeter, Epping Forest, and Leeds.1

These costs are making it more and more tough to get on the property ladder, especially parents. YouGov recently conducted a survey for the Federation, that revealed nearly a third (31%) of parents in England who are private renters, believe that housing costs are stopping them getting their children into their favoured school. 46% also think it is unlikely that their children will be able to afford to live in the place they’ve grown up in.1

A study by the National Housing Federation also revealed that tenants in the private rental sector are becoming increasingly disappointed with the market, with 21% saying that housing will affect how they vote in the general election. This compares to just 8% of homeowners.1

Private renters are finding it progressively difficult to get onto the property ladder, and they also will find it a struggle to find an affordable tenancy, as there is less investment going to the construction of more social housing.1

The lack of affordable properties, increasing house prices, and steady wages are making it more challenging for renters to cover their rent with their earnings, alongside their bills.

The National Housing Federation cautions that the shortage of homes needs to be addressed to stop rents rising further, and wages consumed by rents.

Chief Executive of the National Housing Federation, David Orr, says: “Private renters today are getting a raw deal and are paying the price for a housing crisis that’s been decades in the making.

“Unless we build the affordable homes we desperately need, ordinary working families and young people will continue to struggle to pay their rent, and will have less and less money left to cover basic bills like food and heating.

“We need a long term plan from politicians to put this right. We’re calling on all political parties to commit to end the housing crisis within a generation.”1

http://www.housing.org.uk/media/press-releases/oxford-brighton-and-bath-overtake-areas-of-london-as-the-most-unaffordable-places-to-rent/