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Yahoo
3 hours ago
- Business
- Yahoo
OPINION - I can barely afford rent – and I'm a privileged journalist with a job
About £600 a month. That's what I was paying back in 2020 for a three-bedroom flat in Queen's Road Peckham (Zone 2, no Tube) in 2020. Admittedly, it didn't have a living room and the bathroom was permanently green with mould – but on the plus side I had a personal balcony (read: awkward triangle of cement). Once, I even woke up to my housemate traipsing back through the balcony door, having used my room as a pathway whilst I was dead to the world. I can tell you now that this sort of unwelcome early-hours intrusion is not something you forget quickly – though I had to forgive him as the poor guy had 'nowhere else to go to smoke his zoot'. Anyway five years later, I'm paying over £300 more than that per month, and I live just a few doors down from the Weed Crime Scene. My salary has increased a little, thank god, but has it gone up by 50%? No. My room is only a little larger than a coffin in this new gaff, although I do have a pet in the form of a little mouse who has proved more sociable than at least one of my housemates – and who has an aptitude for acrobatics (alarmingly long jumping off the kitchen counter when I walk into the room, for instance). London rents have risen by 35 per cent since the beginning of the pandemic I'm not alone and I know I have it better than many others in my generation (and of course, this is a very privileged complaint to make when you consider the increasing number of people in temporary accommodation or no housing at all due to this country's housing crisis). London rents have risen by 35 per cent since the beginning of the pandemic, as new data from property website Rightmove shows. Since 2020, real mean earnings for employees in London have increased by approximately 5%, and middle earners in London have seen a smaller increase of around 1.7% . Note the difference? Times really are hard. The gap between wages and rents growth in recent years has created an affordability gap of £720, according to Felicia Odamtten, an economist at the Resolution Foundation. It's really no wonder that nowadays I spend over half my salary on rent and I'm definitely not saving anything. My situation is not even wildly abnormal. The average London renter spends around 49% of their household income on rent, which is a figure considered unaffordable by official standards. It's worse for recent grads, who earn on average between £32,000 and £38,000 (not all of them, though, surely). I thought I'd come across a sweet deal, but it turned out another potential housemate was a heroin user Anecdotally speaking, it is not uncommon for people to now be paying well over £1,200 a month for pretty crappy properties with weird flatmates in undesirable areas. Recently I went to have a look round a flat in north London. It seemed pretty sweet – nice housemates, reasonable sized room, functioning oven – until I found out another potential housemate was a heroin user. Before you cry Gen Z moaning, this isn't that. One in five privately rented homes in London don't meet basic health and safety requirements, according to think tank the Centre for London, while 41% of Londoners have experienced mould in their homes. Gross. Often, it's far worse than this (a full on ground floor flood, mushrooms growing in the toilets, a slug infestation, frost on the inside of windows and a partial roof implosion all spring to mind). The calibre has turned places from homes into hovels. Some people are so desperate at this point that they are even jumping onto rat-infested canal boats, as my colleague did, with disastrous consequences. All this has been documented before. And whilst I don't want to come across as whiney, in the last five years specifically, the effects of the rental crisis have now become cultural. A lack of disposable income is threatening the future of London's social fabric. People go out less, are generally stingy and fear for the future. People in their 30s are moving back in with their parents - which would be fine, except they usually don't want to. Whilst it's true that in general people are richer than they were decades ago – millennials and generation Zs still know they will be poorer than their parents. JOMO (joy of missing out) is the new FOMO. For context, the salary-to-rent ratio was closer to 30% in the 1990s. And on top of this, real costs of food, fuel and transport have skyrocketed. Supermarket prices are now predicted to have shot up by 40% from 2020 to 2025. All this is not exactly a stimulating atmosphere for culture. In such a climate it's hardly surprising nightclubs are at risk and pubs are closing at a rate of one per day. A lot of it is down to people simply not feeling they have the dosh to spend. We often don't. So no wonder Londoners are swapping dancefloors for DMs. Of course, there are also far more serious consequences of unaffordable housing than affluent yuppies' disposable income and ability to pay for pints. Homelessness is rising, as people become unable to pay these sky high rents – there was an eight per cent increase in homelessness in the year to 2025 as well as a big jump in people in work who are without a home. Is the future doomed? To fix this godforsaken mess, the government needs to increase the supply of homes. It needs to build more homes – without ditching social housing requirements. But it has known this for a long time and the early signs of the Labour government are frankly not promising. The situation does not look like it will be resolving anytime soon. I'm no longer living with the bedroom-invading weed smoker – he has fled to Manchester, where rents are just a little more bearable (though rising rapidly). I, however, feel my fate is tied to this city for now. Sigh. Lucy Kenningham is Comment Editor at The Standard
Yahoo
17 hours ago
- Business
- Yahoo
Average rent surges to £2,712 in London and £1,365 across UK
The cost of rent in London has climbed for a 15th consecutive quarter to hit a record high of £2,712 per month, while tenants across the rest of the UK are paying on average £1,365. The data from property site Rightmove (RMV.L) showed that new tenants are now paying an average of £417 more in monthly rent compared to 2020. This is a 44% increase in rents, well above the 36% rise in average earnings over the same period. Rightmove's property expert Colleen Babcock said: 'Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants." "Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants. The good news is that the latest industry snapshot suggests more investors are taking out buy-to-let loans compared with last year, which should help to bring even more homes to the rental market.' Read more: How to get the best currency exchange deal for your holiday money Commuter belt towns and traditionally lower-rent northern regions saw the steepest increases. Ascot in Berkshire saw the largest annual jump, with average rents climbing 21% from £1,863 to £2,259 year-on-year. Farnham in Surrey followed closely with a 19% increase, amid strong demand in affluent areas within commuting distance of London. Northern towns such as Rochdale and Stockport in Greater Manchester saw rents rise by 17% and 15% respectively, pushed by a combination of low base prices and growing demand from remote workers seeking affordability. Glasgow, Scotland's largest city, also registered a 12% rise to £1,219 per month. Several towns in the North West, including Birkenhead and Prenton on the Wirral, recorded rent increases of 11%, amid a wider trend of price pressures moving beyond traditional hotspots. Watford, Andover, and Kidderminster each saw double-digit increases. Average advertised rents for new properties in London rose by 0.5% this quarter to £2,712 per calendar month, a 15th consecutive record for rents in the capital. The number of available rental homes has risen by 15% compared to last year, with the North East seeing the largest jump (33%). Despite this, the number of available properties remains 29% below pre-pandemic levels. At the same time, tenant demand has dropped by 10% year-on-year, leading to a reduction in competition for rental properties. The average number of enquiries per typical rental property now stands at 11, down from 16 last year, but still higher than the 7 enquiries per property in 2019. As supply increases and tenant demand softens, homes are taking longer to let. The average time for a rental property to be marked as 'let agreed' has risen to 25 days, up from 21 days last year and 18 days in the height of the pandemic market in 2022. Moreover, nearly one-quarter (24%) of rental homes have seen a reduction in price during their marketing, the highest proportion since 2017. Read more: 9 air-conditioned homes to help you beat the heat Alex Caddy, manager at Clarkes Estate and Letting Agency, pointed at a marked shift in the rental market in 2025. He said: "After several years of sharp rent inflation post-pandemic, tenants hit a ceiling by late 2024, leading to widespread price slowdowns. Competitively priced, well-presented properties continue to attract strong interest, while some landlords have exited the market due to rising regulatory and financial pressures. However, many of these properties have now re-entered the rental sector, contributing to higher supply levels." Caddy also highlighted an emerging challenge in the student rental sector, where a cut in university intake for 2025 has left many houses in multiple occupation (HMOs) unlet for the September term. Andrew Ralph, managing director of Lettings at Leaders Romans Group, said: "We're seeing a shift in the rental market this quarter. Stock levels are up, and demand remains strong but more measured. Pricing correctly from the outset is key, and being quick to adjust prices in response to market conditions is vital to avoid void periods." He added: "Tenant affordability is a key focus, and matching the right tenants to the right homes is becoming more important than ever. Despite some landlords exiting, the volume remains consistent, and we're seeing a new generation of professional, tech-savvy investors entering the market." Read more: The big tax change set to push vulnerable people out of work Best cash-saving deals paying up to 7.5% Mortgage rate war heats up with Barclays dropping to 3.75%Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 hours ago
- Business
- Yahoo
Average rent surges to £2,712 in London and £1,365 across UK
The cost of rent in London has climbed for a 15th consecutive quarter to hit a record high of £2,712 per month, while tenants across the rest of the UK are paying on average £1,365. The data from property site Rightmove (RMV.L) showed that new tenants are now paying an average of £417 more in monthly rent compared to 2020. This is a 44% increase in rents, well above the 36% rise in average earnings over the same period. Rightmove's property expert Colleen Babcock said: 'Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants." "Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants. The good news is that the latest industry snapshot suggests more investors are taking out buy-to-let loans compared with last year, which should help to bring even more homes to the rental market.' Read more: How to get the best currency exchange deal for your holiday money Commuter belt towns and traditionally lower-rent northern regions saw the steepest increases. Ascot in Berkshire saw the largest annual jump, with average rents climbing 21% from £1,863 to £2,259 year-on-year. Farnham in Surrey followed closely with a 19% increase, amid strong demand in affluent areas within commuting distance of London. Northern towns such as Rochdale and Stockport in Greater Manchester saw rents rise by 17% and 15% respectively, pushed by a combination of low base prices and growing demand from remote workers seeking affordability. Glasgow, Scotland's largest city, also registered a 12% rise to £1,219 per month. Several towns in the North West, including Birkenhead and Prenton on the Wirral, recorded rent increases of 11%, amid a wider trend of price pressures moving beyond traditional hotspots. Watford, Andover, and Kidderminster each saw double-digit increases. Average advertised rents for new properties in London rose by 0.5% this quarter to £2,712 per calendar month, a 15th consecutive record for rents in the capital. The number of available rental homes has risen by 15% compared to last year, with the North East seeing the largest jump (33%). Despite this, the number of available properties remains 29% below pre-pandemic levels. At the same time, tenant demand has dropped by 10% year-on-year, leading to a reduction in competition for rental properties. The average number of enquiries per typical rental property now stands at 11, down from 16 last year, but still higher than the 7 enquiries per property in 2019. As supply increases and tenant demand softens, homes are taking longer to let. The average time for a rental property to be marked as 'let agreed' has risen to 25 days, up from 21 days last year and 18 days in the height of the pandemic market in 2022. Moreover, nearly one-quarter (24%) of rental homes have seen a reduction in price during their marketing, the highest proportion since 2017. Read more: 9 air-conditioned homes to help you beat the heat Alex Caddy, manager at Clarkes Estate and Letting Agency, pointed at a marked shift in the rental market in 2025. He said: "After several years of sharp rent inflation post-pandemic, tenants hit a ceiling by late 2024, leading to widespread price slowdowns. Competitively priced, well-presented properties continue to attract strong interest, while some landlords have exited the market due to rising regulatory and financial pressures. However, many of these properties have now re-entered the rental sector, contributing to higher supply levels." Caddy also highlighted an emerging challenge in the student rental sector, where a cut in university intake for 2025 has left many houses in multiple occupation (HMOs) unlet for the September term. Andrew Ralph, managing director of Lettings at Leaders Romans Group, said: "We're seeing a shift in the rental market this quarter. Stock levels are up, and demand remains strong but more measured. Pricing correctly from the outset is key, and being quick to adjust prices in response to market conditions is vital to avoid void periods." He added: "Tenant affordability is a key focus, and matching the right tenants to the right homes is becoming more important than ever. Despite some landlords exiting, the volume remains consistent, and we're seeing a new generation of professional, tech-savvy investors entering the market." Read more: The big tax change set to push vulnerable people out of work Best cash-saving deals paying up to 7.5% Mortgage rate war heats up with Barclays dropping to 3.75%Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Record high rents as tenants pay £400 more per month than five years ago
Asking rents across Britain have reached new record highs, according to an index. The average rent being asked across Britain, excluding London, has reached a record £1,365 per month, according to figures from Rightmove covering the second quarter of this year. Despite reaching a new record, the average asking rent for a home outside of London is now 3.9% higher than this time last year, the lowest this annual growth figure has been since 2020. In London, the average advertised rent has also reached a new high, at £2,712 per month. Average advertised rents for new properties in London rose by 1.9% annually. Rightmove, which used data from its website, said that it is taking an average of 25 days for a rental home to be marked 'let agreed', up from 21 days last year and 18 days in 2022. Nearly a quarter (24%) of rental homes are having price reductions while they are advertised, marking the highest proportion recorded by Rightmove since 2017. It said that the slowing in the pace of rental price growth has been partly because of the balance between supply and demand improving. It is seeing the best balance between supply and demand in the rental market since 2020. The number of properties for tenants to choose from is 15% higher than a year earlier, but remains 29% below the level seen in 2019, just before the coronavirus pandemic lockdowns in the UK. Tenant demand has also fallen by 10% compared with a year earlier. The average number of inquiries a typical rental property receives is now 11 – down from 16 last year, but up from seven in 2019 – the report said. Five years on from when the pandemic began, the average monthly rent that a new tenant faces paying is more than £400 (£417) more than in 2020, Rightmove said. Colleen Babcock, a property expert at Rightmove, said: 'Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants. 'Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants.' Alex Caddy, manager at Clarkes Estate and Letting Agency, said: 'The rental market has undergone a marked shift in 2025. 'After several years of sharp rent inflation post-pandemic, tenants hit a ceiling by late 2024, leading to widespread price slowdowns. 'Competitively priced, well-presented properties continue to attract strong interest, echoing trends seen in the sales market. However, the market is now dealing with a much higher supply of rental homes, a complex reversal of previous trends. 'Some landlords have exited the sector over the past two years due to rising regulatory and financial pressures, but with the sales market slowing in some areas, a growing number of those properties have re-entered the rental market. 'Demand remains robust, particularly for quality one and two bedroom homes. Larger properties are moving more slowly, with some seeing longer void periods as tenants benefit from increased choice.' Andrew Ralph, managing director, lettings at LRG (Leaders Romans Group) said: 'We're seeing a shift in the rental market this quarter. Stock levels are up, and demand remains strong but more measured, bringing us closer to a sustainable balance. 'Average rents are still rising year-on-year, but at a slower pace. Pricing correctly from the outset is key, and being quick to adjust price in line with market response helps avoid unnecessary void periods.' Megan Eighteen, president of property professionals' body Arla Propertymark, said: 'Many landlords within the private rental market are grappling with substantial hikes in their overall costs, including increased taxes, unfavourable mortgage rates, and ongoing regulatory challenges. 'These factors are making property investment less appealing and potentially riskier.' Richard Lane, chief client officer at StepChange Debt Charity, said: 'The last five years have hit household finances hard, but few have felt it more sharply than those in the private rented sector. 'The majority of our clients struggling with debt are renters, with a third in the PRS (private rented sector). Our data shows that among StepChange clients, housing costs take up 37% of private renters' incomes on average – compared to 29% among social renters and 27% among mortgage holders. 'When so much of your income goes on rent, it's no wonder private renters are more exposed to debt and financial hardship.' Ben Twomey, chief executive of Generation Rent, said: 'When so much of our income is swallowed up by landlords, it can mean that we can't afford to heat our homes for the winter or feed ourselves properly. Some renters are staring down the barrel of debt and homelessness.' Sign in to access your portfolio
The Independent
a day ago
- Business
- The Independent
Record high rents as tenants pay £400 more per month than five years ago
Asking rents across Britain have reached new record highs, according to an index. The average rent being asked across Britain, excluding London, has reached a record £1,365 per month, according to figures from Rightmove covering the second quarter of this year. Despite reaching a new record, the average asking rent for a home outside of London is now 3.9% higher than this time last year, the lowest this annual growth figure has been since 2020. In London, the average advertised rent has also reached a new high, at £2,712 per month. Average advertised rents for new properties in London rose by 1.9% annually. Rightmove, which used data from its website, said that it is taking an average of 25 days for a rental home to be marked 'let agreed', up from 21 days last year and 18 days in 2022. Nearly a quarter (24%) of rental homes are having price reductions while they are advertised, marking the highest proportion recorded by Rightmove since 2017. It said that the slowing in the pace of rental price growth has been partly because of the balance between supply and demand improving. It is seeing the best balance between supply and demand in the rental market since 2020. The number of properties for tenants to choose from is 15% higher than a year earlier, but remains 29% below the level seen in 2019, just before the coronavirus pandemic lockdowns in the UK. Tenant demand has also fallen by 10% compared with a year earlier. The average number of inquiries a typical rental property receives is now 11 – down from 16 last year, but up from seven in 2019 – the report said. Five years on from when the pandemic began, the average monthly rent that a new tenant faces paying is more than £400 (£417) more than in 2020, Rightmove said. Colleen Babcock, a property expert at Rightmove, said: 'Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants. 'Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants.' Alex Caddy, manager at Clarkes Estate and Letting Agency, said: 'The rental market has undergone a marked shift in 2025. 'After several years of sharp rent inflation post-pandemic, tenants hit a ceiling by late 2024, leading to widespread price slowdowns. 'Competitively priced, well-presented properties continue to attract strong interest, echoing trends seen in the sales market. However, the market is now dealing with a much higher supply of rental homes, a complex reversal of previous trends. 'Some landlords have exited the sector over the past two years due to rising regulatory and financial pressures, but with the sales market slowing in some areas, a growing number of those properties have re-entered the rental market. 'Demand remains robust, particularly for quality one and two bedroom homes. Larger properties are moving more slowly, with some seeing longer void periods as tenants benefit from increased choice.' Andrew Ralph, managing director, lettings at LRG (Leaders Romans Group) said: 'We're seeing a shift in the rental market this quarter. Stock levels are up, and demand remains strong but more measured, bringing us closer to a sustainable balance. 'Average rents are still rising year-on-year, but at a slower pace. Pricing correctly from the outset is key, and being quick to adjust price in line with market response helps avoid unnecessary void periods.' Megan Eighteen, president of property professionals' body Arla Propertymark, said: 'Many landlords within the private rental market are grappling with substantial hikes in their overall costs, including increased taxes, unfavourable mortgage rates, and ongoing regulatory challenges. 'These factors are making property investment less appealing and potentially riskier.' Richard Lane, chief client officer at StepChange Debt Charity, said: 'The last five years have hit household finances hard, but few have felt it more sharply than those in the private rented sector. 'The majority of our clients struggling with debt are renters, with a third in the PRS (private rented sector). Our data shows that among StepChange clients, housing costs take up 37% of private renters' incomes on average – compared to 29% among social renters and 27% among mortgage holders. 'When so much of your income goes on rent, it's no wonder private renters are more exposed to debt and financial hardship.' Ben Twomey, chief executive of Generation Rent, said: 'When so much of our income is swallowed up by landlords, it can mean that we can't afford to heat our homes for the winter or feed ourselves properly. Some renters are staring down the barrel of debt and homelessness.'
