2013 sees rents rise twice as fast as wages
Published by Max Salsbury for 24dash.com in Housing and also in Communities, Finance
Westminster negotiates lower private rents on former council flats
Rent costs in England and Wales have risen twice as fast as wages over the last 12 months.
The latest buy-to-let index from LSL Property Services shows that the average monthly rent now stands at £753 - a 1.6% rise on 2012 - compared to an average monthly wage of £1,941 - a 0.8% increase throughout the year.
London saw the steepest rent rises – 4.4% higher than in November 2012 - followed by a 3.4% annual increase in the South West, while rents in the South East are 3.2% higher than 12 months ago.
Meanwhile, rents in the East of England have fallen by 5.5% (or £42) over the last year. This was followed by a 2.8% annual drop in the West Midlands, while rents in both the North East and Yorkshire and the Humber are 2.0% lower than November 2012.
David Newnes, director of LSL, said: “Economic reality now resembles the most optimistic dreams of last year. But for so many households, the dream of homeownership is still relegated to the imagination.
“It’s not just wages. Savings rates have been swamped by inflation for half a decade – so building up even a 5% deposit is a real struggle. Help to Buy is having a perceptible impact, with thousands of first time buyers benefiting already. Yet millions of new households have joined the queue at the bottom of the housing ladder – and private renting is the only tenure to have taken up much slack.”