Welsh tenants struggling as incomes drop to lowest in UK

Published by Max Salsbury for 24dash.com in Housing and also in Communities, Finance

Welsh tenants are struggling after a reduction in incomes has seen them earn less than tenants anywhere else in the UK.

June's Homelet Rental Index shows that Welsh tenants' annual incomes have dropped by 7.2% over the past year.

The data also reveals that Wales has seen the highest rise in unemployment in the UK, increasing 3.3% to 9.8%.

The private rented sector in Wales also appears to be waning after average rental amounts decreased by 3.3% over the past year.

At £555 a month, Wales is now the second cheapest region in the UK to rent a home.

However, despite rents decreasing, the drop in income is considerably more, meaning Welsh tenants are still worse off.

According to a report by Templeton LPA, over 100,000 tenants in England and Wales are struggling with severe rent arrears.

In the past year rent has increased by 2.4% while average tenant income has dropped by 0.6%.

Ian Fraser, HomeLet’s Managing Director, said: “It appears long term unemployment and decreasing average tenant income is having a real effect on the financial stability of Welsh tenants.

"This is evident in HomeLet’s Rental Index, where average tenants’ incomes are now the lowest in the UK.    

“With the Welsh property market struggling to recover and likely to remain subdued throughout the rest of 2012, residents are finding it difficult to afford a home.

"This correlates to the increasing number of tenants in England and Wales who are experiencing rental arrears, suggesting the UK population is facing real financial hardship, not only with getting on the property ladder, but with living costs in general.”