Tenants’ Finances Close To Breaking

The co-founder of a property listings website claims the UK’s private rented sector is a “ticking time bomb”, with tenants’ ability to absorb rent increases at breaking point. Consistent rent rises in the UK housing market have put immense financial pressure on tenants, with renters in popular areas such as London now shelling out over two thirds of their average income on rent.However, despite tenants’ budgets already being stretched to the limit, they now face even further price rises as droves of Buy To Let landlords pass on the costs of tax changes and new Government legislation in the form of rent rises. But research carried out for TheHouseShop.com claims that almost half (42%) of private renters would not be able to afford an increase of up to 5% in their monthly rent costs. Read more on the Housing Excellence website.

Housing Crisis 'Single Most Important Driver of Poverty,'

UK government proposals to manage the housing crisis through rent controls are doomed to fail, according to a critical new report by the Institute of Economic Affairs (IEA). In the UK, tenants are saddled with rents on average almost 50% higher than those in the Netherlands, Belgium, Germany and France. British politicians across the political spectrum agree that the UK is in the grips of a serious housing crisis. The average private sector rent in London has reached 62% of average income. And even across the rest of the UK, renters are spending nearly 20% more of their incomes on rent payments than their European counterparts. Put simply, housing in the UK, and renting in particular, is the most expensive in Europe. Read the report on the IEA website.

Working Families Cutting Back On Essentials To Pay Rent Or Mortgage

Nearly half of working families have having to cut back on essential food and clothing to pay the mounting costs of the housing crisis. Rising house prices and rents caused by a shortage of affordable homes mean the average household now spends 29 per cent of its monthly income on housing costs. Those locked out of the housing market who privately rent fare even worse, spending 43 per cent of their salaries. Now research by Shelter and YouGov found that the equivalent of 3.7 million families say they have cut back on buying essential food or clothing to pay their mortgage or rent. A total of 44 per cent of households surveyed said they had had cut back on those items. Read more on the Independent website.

Care Home Rooms Now Cost More Than £30,000 A Year

The financial pressure on older people and their families when trying to pay for social care is growing, with the average cost of a room in a care home now more than £30,000 a year. The cost of a care home room has risen by 5.2% in the last year, more than 10 times the average increase in pensioners income, according to a report by Prestige Nursing and Care. The figures highlight the financial crisis in the care home industry and the impact this is having on older people and their families. Four Seasons Health Care, Britain’s biggest care home group, reported a pre-tax loss of £264m last year and that it was struggling under the weight of more than £500m of debt. Read more on the Prestige website.

Average Home 'Costs 10 Times Annual Income Of Full-Time Worker

The typical UK home costs more than 10 times the annual income of full-time workers, analysis of official figures has found. And the situation is only slightly better on first-time buyer homes, which cost almost eight times the average income. A housing charity has claimed the findings show home ownership is now a "distant dream" for millions across the country. The average property in the UK is currently valued at £284,000 by the Office for National Statistics, while first-time buyers typically paid £215,000 to climb on to the property ladder. By contrast, the median gross annual earnings for full-time employees is £27,200, according to latest official figures. Read more on the Daily Mail website.