Over Half Face Unaffordable Rent

A charity working for the rights of homeless people has published a report saying working families face unaffordable private rents in over half of local authorities in England.

According to the charity, Shelter, the typical rents in the majority of areas from private landlords are over a third of the average take-home pay - the widely accepted measure of affordability.

The report found that from 1997 to 2007, rents increased at one and a half times the rate of incomes leading to 38% of families with children, who are renting privately, cutting down on buying food to pay their rent.

Campbell Robb, Shelter’s Chief Executive, said: "We have become depressingly familiar with first time buyers being priced out of the housing market, but the impact of unaffordable rents is more dramatic.

"With no cheaper alternative, ordinary people are forced to cut their spending on essentials like food and heating, or uproot and move away from jobs, schools and families."

The findings show that for those priced out of home ownership, renting is not the cheaper alternative, as it has often been considered. The findings also show big differences in affordability in different parts of the country.

Rural areas are seeing higher rent rates despite low earnings, with rents more affordable in Manchester, Liverpool or Birmingham than in north Devon, north Dorset or Herefordshire.

The report found that London boroughs were the most expensive in England, with the average rent for a two bedroom home in the capital costing £1,360 per month, almost two and a half times the average in the rest of the country at £568.

The least affordable local authority area outside London is Oxford, where typical rents account for 55% of average earnings.

Shelter is now calling on the government to take urgent action to stabilise the rental market and to develop policies to bring rents more in line with average earnings.

The group are also concerned that high rents are increasing the level of homelessness around the country.

On Wednesday, Housing Minister Grant Shapps announced a £35.7 million injection to improve homeless hostels across the country.

The funding for the Homelessness Change Programme was allocated to help 37 projects and improve facilities for rough sleepers along with almost 1,200 extra bed spaces. The funding has also been earmarked for over 320 extra beds in the London area, as well as helping people find employment.

Speaking at a homelessness conference this week, Mr Shapps said that in view of the high demand for the funding, a further £5million will be allocated to the Homelessness Change Programme, with further allocations to be announced very shortly.

(DW/BMcC)