Two-thirds of Britain is unaffordable for young renters, research claims.
Analysis by the BBC, using average ONS weekly earnings for 22- to 29-year-olds and Hometrack rental data, found that 65% of British postcodes charge rents on a one-bedroom home that would cost more than 30% of the age group’s typical salary.
The analysis uses a threshold of anything over 30% of income as unaffordable.
The research found that a gross annual income of £24,800 would be needed for the average one-bedroom rental flat in England to become affordable under the 30% measure. In Scotland £20,700 is needed and in Wales £17,600.
Commenting on the research, David Smith, policy director for the Residential Landlords Association, said: “With a majority of under-35s living in rented housing, it is young people now facing the consequences of the supply crisis facing the private rental market.
“The Government’s own data shows that across England there was a loss of 46,000 private rented homes in England in 2016/17, a result of tax increases on the sector.
“The demand for homes to rent is not expected to slow, whilst our own figures warn of a net loss of 133,000 homes for rent over the next year.
“Given the scale of the housing crisis, ministers need to support the development of new homes to rent alongside all other tenures.”
‘The analysis uses a threshold of anything over 30% of income as unaffordable’. Which means they have 70% of their income left for life’s little luxuries like avocado on toast for breakfast – which was exactly what the 3 house sharers interviewed on R5 Live yesterday morning as part of this ‘research’ were having! Strangely, despite all this nationwide unaffordability, these lads all agreed that they thought their accommodation costs were quite reasonable!
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