Income gains for private renters have been absorbed by rising housing costs more than twice over in just over a decade, according to a new report.
Analysis by the think tank Resolution Foundation found housing costs in the UK had far outstripped income rises between 2002/2003 and 2015.
The average private renter household income had grown by £8 a week (2%) in the period while real housing costs had grown by £19 a week (16%).
Although households with mortgages continue to be the largest tenure group in the UK, the report The Housing Headwind notes, a rising proportion of working-age households now rent in the private sector.
“We show that private renters consistently spend a higher proportion of their incomes on housing than any other tenure group, with significant implications for both their immediate living standards and longer term prospects,” the report states.
It adds: “Generation Rent is growing up and having children, changing the nature of the housing need in the private rented sector.”
The authors took 2002-2003 as their starting point as this was the year household incomes in the UK began to slow down.
They considered a range of sources to make their calculations, including the Office for Budget Responsibility’s Private Housing Rental prices, English Housing Survey and Labour Force Survey data.
It costs more to run a hire car than run an owned car as it involves all kinds of extra costs. Same applies to housing and the Councils are loading up those costs with whole borough licensing, charging rates on empty property when there is a rental void. What do you expect!!!!!!
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dont forget the risk/reward process. There are so many ways to screw up a letting and get fined it has to be worth while in taking on this risk of being a landlord. (and agent)
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Pay the rent and that is the end of your maintenance problems.
Pay a mortgage and that is the start of your maintenance problems.
No one ever considers the cost of running a house on top of the mortgage. Do the “experts” believe that boilers, electrical appliances and plumbing never go wrong in an owner/occupier home?
A true cost of owner occupation is called for, not a crude invalid comparison.
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