Posts with tag: rents in the UK

UK rents among the highest in Europe

Published On: December 13, 2015 at 9:15 am

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New data suggests that rental costs in Britain are among the highest in the whole of Europe, with solace coming with the fact that homeowners benefit from low mortgage deals.

Research from the National Housing Federation also suggests that UK tenants spend 39.1% of their income on rent, in comparison to the European average of 28%.

Competition

The federation also said that renters were now more secure within their homes, as a result as shorter tenancies. However, homeowners are reaping the benefits of advanced competition between lenders.

As a result of the ongoing mortgage battle between lenders, there is currently, ‘fierce competition’ meaning that a number of, ‘great mortgage deals,’ are available, according to the British Bankers’ Association. Tumbling interest rates, long-term tracker deals and lack of supply of homes are all leading lenders to lower the cost of home loans to try and entice owners to their products.

Concern

For those trying to get onto the housing ladder, the gulf in fortunes between renters and owners will come as a concern. The National Housing Federation notes that around 17% of UK residents were private renters, but are faced with high costs.

More of a concern is the fact that renters in European Countries such as Holland and Germany have fees 50% cheaper than those in Britain.

UK rents among the highest in Europe

UK rents among the highest in Europe

‘How can we expect people to raise families, start businesses or save for their first home if they don’t even know where they will be able to afford to live?’ asks David Orr, chief executive of the National Housing Federation. He also said that, ‘high rents are just one symptom of the housing crisis, we are simply not building enough due to under investment and problems with the land market.[1]

Deals

The British Bankers’ Association suggests that activity among owner-occupiers has increased over recent week, with lenders trying to encourage owners to move to fixed-rate deals.

Aaron Strutt, of mortgage brokers Trinity Financial, said that, ‘more of the banks and building societies are actively targeting their existing customers and offering them new deals. Rates are so cheap at the moment that there are often savings to be made even if you are on one of the super-low tracker mortgages.’[1]

[1] http://www.bbc.co.uk/news/business-33253659

 

 

 

Most Expensive Place to Rent in Britain (and it’s not London!)

Published On: May 7, 2015 at 8:45 am

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Categories: Property News

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The most expensive place in the UK to rent a room in a shared house or flat is Woking in Surrey.

A new study has found that renting in Woking, a 30-minute train journey from London Waterloo, cost £755 per month in the first quarter (Q1) of 2015, up from £503 in Q1 2014.1

Most Expensive Place to Rent in Britain (and it's not London!)

Most Expensive Place to Rent in Britain (and it’s not London!)

The serious housing shortage in Britain has caused property price surges and is fuelling room rent rises in popular areas and cities, according to the latest rental index from the flat and house share website EasyRoommate. The average rent per person in the UK was £451 a month in Q1 2015. This has risen from £433 in Q1 2014.1

Young professionals are moving to Surrey and other Home Counties in a bid to find more value for money whilst still working in London.

London’s density is increasing, causing young renters to leave the capital, where their work and social life is.

Chief Executive of EasyRoommate, Karim Goudiaby says: “There are also large corporations based in Woking, such as SABMiller and Cap Gemini, which is drawing young professionals out into the town who tend to share.”1

London is also in the top five most expensive places to rent in the UK, where rents rose by 6% this year compared to Q1 2014. The average room rate was £672 in Q1 2015. Furthermore, for every available room in the capital, there were around six people looking for a room.1

In an attempt to stop rents spiralling, Ed Miliband has pledged rent controls on three-year tenancies, with rent increases in this period limited to inflation rates.

The Residential Landlords Association (RLA) has criticised the plans. It believes they will reduce the supply of homes and discourage investment in the buy-to-let sector.

Research from the RLA indicates that two thirds of landlords in the UK will leave the private rental sector if Labour wins the general election and a rent controls policy is introduced.

Three Welsh cities, Pontypridd, Swansea and Carmarthen, featured in the 20 cheapest cities. Lowestoft in Suffolk was ranked the cheapest place to rent in 2015.1

1 http://www.telegraph.co.uk/finance/property/11583894/Rip-off-rents-Britains-priciest-place-to-flat-share-and-its-not-London.html