Thu. May 19th, 2022

Only the top 25% of employees in London were able to privately rent a property in the city at an affordable price last year, according to official cost figures across the UK.

Data from the Office for National Statistics revealed that for three-quarters of households, rents in the capital were set at a level equivalent to more than 30% of their income.

ONS said it considered an area as having private rent at an affordable price if tenants do not spend more than 30% of their income on it.

Rents in some parts of the country fell when the pandemic hit, but in recent months, agents have reported that costs have begun to rise again.

Tenants were not offered the same payment breaks as mortgage lenders in the first months of the crisis, but were given protection against eviction.

A ban on landlords taking over their properties is over, and there have been warnings that families who had received the £ 20 universal credit increase until it was suspended on Wednesday could struggle to keep their homes.

The ONS data, which looked at median earnings among tenants before tax and median rent across the country from 2012-20, underscore how much of some households ’income goes to housing.

Across the UK, the figures show that a household with a median income could expect to spend 23% of their earnings on the median private rent. For the bottom 25% of employees, renting the same property would cost 38% of their income.

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In London, 38% of the average household’s income would be required to reach the average rent, while the figure in the most affordable region, the East Midlands, was 22%.

For most regions, the ONS said private rents had become slightly more affordable since 2013, but in eastern England affordability fell, with the amount households spend on rent rising from 23% to 26%.

Sarah Coles, a personal finance analyst at investment firm Hargreaves Lansdown, said the figures showed rents were “devastating” to all but the richest households in London.

The average earnings may be skewed upward by low-income people losing jobs during the pandemic, she said, so their earnings would not matter to the ONS average.

“In 2020, we spent, on average, just under a quarter of our income on rent,” she said. “However, the averages tell only a small part of the story. In fact, an awful lot of tenants faced one uphill, which in the meantime has gotten even tougher. ”

Price from Lewisham: the bus driver who beat the bailiffs to stay in his neighborhood - video
Price from Lewisham: the bus driver who beat the bailiffs to stay in his neighborhood – video

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