Tuesday, 10 November 2015
London rental prices sky high, Could rent strikes be the answer ??
With the housing crisis in teh UK no more accute than in the Xcapital city of London seeing rent prices soar in recent years. Could we start to see the idea of rent strikes between occupants making a much needed return ?? House rental prices in London have risen by 7.7pc in the past year to £1,560 a month, making rental costs in the capital more than double the UK average. Excluding the capital, rents across the UK average £749 a month, having risen 3.5pc year-on-year, according to the latest quarterly rental index from Homelet. The gap between London and the rest of the UK is now the highest on record, the insurer said. However, rents have risen fastest in Scotland, where new tenancies over the three months to October were priced 9pc higher than the same time a year ago. Prices surged to £665 last month, compared to £610 a year ago. Renting is cheapest in the North East, where average prices are £536 a month. The most expensive area outside London is the South East, where new rental properties coming to the market last month averaged £944 in monthly rent. Average price for new rental properties across the UK, October 2015 Region Average price Annual change Greater London £1,560 7.5% South East £944 4.3% South West £872 4% East Anglia £809 -1.2% West Midlands £669 2% Scotland £665 9% North West £635 -4.9% East Midlands £628 5.9% Yorkshire & Humberside £621 2.0% Wales £614 1.8% Northern Ireland £588 -2.1% North East £536 3.9% Across the UK, rent increases are far outpacing wage growth, with average tenant incomes up just 1.7pc over the year. A separate survey last month suggested many renters are paying more than they can actually afford. Affordable rents are defined as making up less than 35pc of net household income. Homelet, which also questioned almost 15,000 tenants about their views on the rental market, said that while 71pc of tenants are keen to buy their homes, 64pc have no expectations of being able to do so any time soon. An overwhelming number cited high deposits as the biggest barrier preventing them from buying. Yet the report suggested more than half weren't taking any steps to save for a deposit. In total, 20-somethings in the UK can expect to pay £66,800 in rent to landlords by the time they are 30. The authors also found price is the most important factor for tenants choosing a home, ranking higher than other factors such as location, a low crime rate and distance to work. Some 71pc of respondents said they rent through a letting agent, with just 29pc renting directly through a landlord. Those who dealt directly with landlords were more likely to be happier than those renting through letting agents. From the daily Telegraph http://www.telegraph.co.uk/finance/property/11984097/London-rents-now-a-record-108pc-higher-than-rest-of-UK.html