Latest news with #rent
Times
3 hours ago
- Business
- Times
Renters face higher monthly bills than mortgage holders
Renters have seen a greater increase in their monthly housing bills over the past three years than homeowners with mortgages. Average rents have increased by £221 to £1,283 per calendar month since 2022, while the average mortgage repayment rose by £218 to £1,154 per month, according to research from Zoopla, the property search website. A sharp rise in demand for rented homes in 2022 and 2023, while the stock of private rented homes has remained broadly static, outstripped rising mortgage rates over the same period. Higher rents are also linked to affordability constraints, which have prevented tenants from getting on the housing ladder and caused many to remain in the rental market for longer. This boosted already high demand in the wake of the pandemic, thanks to a strong labour market and higher levels of migration for work and study. Robust growth in average earnings over the past three years has supported the acceleration in average rents. However, private renters on lower incomes and those relying on state support have faced a greater squeeze on living costs from higher housing payments. The largest increase in rents has occurred outside London over the past three years. In Oldham, rents have risen by more than a third — 35 per cent — to £876 since 2022. Wigan also saw rents increase by 32 per cent to an average of £800 a month. More recently, rental price inflation for new lets has weakened from a high base and is at its lowest rate for four years. Slower wage growth, limiting rental affordability, and improvements in mortgage market conditions for first-time buyers have helped to reduce rent increases. This week, Hamptons, the estate agency, reduced its forecast for rent increases for this year from 4.5 per cent to 1 per cent, which would be the smallest annual increase since 2018. 'The quickest way to alleviate high rents is to grow the stock of homes for rent in both the social and private rented sectors,' said Richard Donnell, executive director at Zoopla. 'Growing housing supply is a key government target, and it's vital that the stock of rented homes is expanded across all tenures.' In March, Savills, the estate agency, said that households weathered a collective £19.8 billion rise in mortgage and rental payments last year, to £217.5 billion. This represented a record, £8.6 billion higher than the previous peak in 2016, when adjusted for inflation. The figures show that mortgage borrowers faced interest payments increasing to £49.2 billion last year from £39.2 billion in 2023 — a 25 per cent increase. With many landlords passing on the cost of these higher mortgage payments to tenants, renters experienced a 9 per cent rise in payments to £80.7 billion. Other costs included in the total figure included mortgage repayments, excluding interest, which rose by 2 per cent to £60.3 billion and social rent, which jumped by 8 per cent to £27.3 billion. Separately, Savills said in November last year that it expected rents to rise by nearly a fifth over the next five years. That would mean increases continuing to outpace wage growth, with economists at the estate agency forecasting a 15 per cent increase in average incomes over the next five years.
Yahoo
14 hours ago
- Business
- Yahoo
Map shows the 'sky-high' cost of renting near you - and where it's getting worse
The monthly cost of renting a home in the UK is 21% higher than it was three years ago, according to online property platform Zoopla. Analysis by the company shows the average monthly rent this spring was £1,283 across the UK, marking a £221 increase from 2022. While the rate of rent increases has slowed this year, one housing market expert told Yahoo News that this "isn't necessarily positive" as "it owes a great deal to how unaffordable rents have become". She warned rental costs across the UK are now "sky high". Here, Yahoo News has put together a map showing the most expensive places to rent in the UK, and details how the cost of rent has risen over time. How much does rent cost? The average rent in the UK is now £1,344 a month, according to the Office for National Statistics figures, which is slightly higher than Zoopla's estimate. Sarah Coles, head of personal finance at Hargreaves Lansdown, told Yahoo News: "The averages disguise huge variations across the UK, which have put renters in some areas under particular pressure. "Those in the North East are wrestling with rises close to 10% over the past year, while those in London have seen smaller rises, but are paying an eye-watering £2,252 a month on average." As you might expect, London is the most expensive place in the country to rent, followed by £1,384 per month in the South East and £1,240 in the East of England. Despite suffering the highest annual rise, the North East is still the cheapest area of the UK to rent with a monthly average of £734, followed by £804 in Wales, and £822 in Yorkshire and the Humber. How much has rent gone up over time? Figures from the ONS show a steep increase in rent across England, rising from £1,124 per month in June 2022 to £1,399 in the same month this year. Scotland saw rent increase from £802 to £999 during the same period, compared to a jump from £631 to £804 in Wales. Figures for Northern Ireland were only available up to April this year, where average rent stood at £852, compared to £665 in April 2022. Coles said that while the cost of renting "varies dramatically" across the UK, "nobody has escaped the sky-high rent rises of recent years". While she notes the average rent rise fell to 6.7% in the 12 months to June, "runaway hikes of recent years have really added up". "The fact that rent rises have slowed isn't necessarily positive, because it owes a great deal to how unaffordable rents have become," she added. "The fact rents have been rocketing for four years – well ahead of wages – has pushed more renters out of the market. "Fewer are able to leave the family home, more are returning to it, and some are stretching to a house purchase to get out of the rental cycle." Which areas have seen the steepest increases? Figures from Zoolpa provide a more detailed picture of areas that have seen the most significant rent hikes over the past three years. Oldham in Greater Manchester is the worst affected, with a 35% increase between 2022 and 2025 bringing average monthly rent to £876 as of March this year. Falkirk, in Scotland's Central Lowlands, saw a 31% rise during this period, with average rent standing at £881 in March. What is the government doing about rental costs? The government's flagship Renters' Rights Bill passed is third reading in the House of Lords on Monday, bringing it one step closer to becoming law. The bill aims to provide greater security to tenants, including the abolishment of fixed-term tenancies; the end of controversial "no fault" Section 21 evictions; and a decent homes standard for private accommodation. While this will provide some relief to tenants - particularly those with more exploitative landlords - Coles said the "fundamental issue" of high rental costs is a "shortage of housing". "That's not a problem that can be solved overnight," she added. "Changes to planning rules and a commitment to building more homes will eventually help boost the properties available, which should make homes more affordable to both rent and buy." In her spring statement, chancellor Rachel Reeves acknowledged that the government will no longer be able to meet its manifesto pledge of building 1.5 million homes in England by the end of this parliament. The Office for Budget Responsibility forecasted 1.3 million new homes added to the UK's housing stock between 2025 and 2029, with around 170,000 resulting from Labour's changes to the National Planning Policy Framework. However, FullFact said it is unclear how many of these homes will be built in England, as the OBR does not provide a nation-by-nation breakdown of its forecasts. Beyond increasing supply, Tom Darling, director at the Renters' Reform Coalition, has called on the government to bring in a cap on rent increases "so rent can't rise faster than inflation or wage growth". "A rent cap would give renters real security in their homes, allowing us to plan for the future and put down roots in an area, reduce homelessness and poverty, and mean people have more money to spend in their communities instead of lining their landlords' pockets." Read more UK property bodies form build to rent alliance: 'Planning reform is not enough' (CityAM) Voices: Could Angela Rayner's squeeze on landlords hurt the very people it's supposed to help? (The Independent) Buying more expensive than renting for first time in 13 years (The Telegraph)
Washington Post
a day ago
- Business
- Washington Post
The government was once a steady partner for nonprofits. That's changing
Dawn Price signs rent checks worth about $160,000 every month for 79 people that her nonprofit helps house in Laguna Beach, California. Usually, she logs into an online portal to withdraw enough from an account funded by a grant from the federal housing agency. But in February, she couldn't. Access had been temporarily cut off for many housing organizations as part of the Trump administration's cuts and funding freezes .
Yahoo
a day ago
- Business
- Yahoo
Can you afford to live here? Europe's cities ranked by rent-to-salary ratio
Housing takes up a large part of household budgets, and this share is growing across Europe, according to Eurostat. High rent prices in city centres add extra pressure, especially for low-income earners and those on minimum wage. In some European countries and cities, rent can consume nearly an entire salary. In fact, in certain places, average net salaries are not enough to cover the rent for a one-bedroom apartment in the city centre, according to Deutsche Bank Research Institute. So, which countries and cities in Europe have the best rent-to-salary ratio? Where is rent simply unaffordable? And how do European cities compare to global ones in terms of housing costs and salaries? The Mapping the World's Prices report compares net monthly salaries and rents for one-bedroom apartments in city centres across 69 cities worldwide. Euronews Business takes a closer look at the 28 European cities included in the report along with a few others for broader comparison. Where are the highest salaries in Europe? In 2025, average monthly net salaries range from just €151 in Cairo to €7,307 in Geneva, with Zurich close behind at €7,127. This makes Switzerland the highest-paying country overall. In Europe, Istanbul has the lowest salary at €855, followed by €1,044 in Athens. People in the Northern and Western European cities are well-paid. The net salaries are above €4,000 in Luxembourg, Amsterdam, Copenhagen and Frankfurt. Rome has the lowest average salary among the capital cities of Europe's five largest economies, at €2,046. Madrid follows slightly higher at €2,193. Salaries are significantly higher in Berlin (€3,565), Paris (€3,630), and London (€3,637), with only minimal differences among the UK, France, and Germany. Salaries are also high in US cities, which make up five of the top 11 globally. Related Which career in Europe will reward you with the highest salary? The cost of love: Europe's most expensive and cheapest cities for a date Which European cities have the highest rents? Rents for one-bedroom apartments in city centres vary widely, ranging from as low as €189 in Cairo to €3,792 ($4,143) in New York. US cities dominate the top end of the scale. In Europe, the highest rent is in London at €2,732 (£2,365), while the lowest is in Athens at just €595. In Zurich, Dublin, Amsterdam, and Geneva, rents also exceed €2,000, while in Istanbul and Budapest, they remain below €900. Lisbon and Istanbul: Salary doesn't cover the rent The percentage of salary spent on rent is a more useful measure. It shows how much disposable income is left after paying for accommodation. The rent-to-salary ratio ranges from 24% in Bangalore to 125% in Cairo. A ratio of 100% means the entire salary goes to rent. Anything above that means nothing is left in the pocket or extra income is needed to cover rent. In Europe, rent-to-salary ratio differs from 29% in Geneva to 116% in Lisbon. Besides the Portuguese capital, the ratio is also slightly above 100% in Istanbul (101%). This means the average net salary is not enough to pay the rent for a one-bedroom apartment in either Lisbon or Istanbul. Single earners need to spend three-quarters of their salary on rent in London (75%), as well as in Barcelona and Madrid (both at 74%). In Milan, the ratio is also high at 71%. More than half of the average salary is also spent on rent in several other cities: Rome (65%), Dublin (62%), Athens (57%), Warsaw (56%), Prague (54%), and Budapest (52%). Related Living in debt? Savings expert shares secret to 'spring clean your finances' How has wealth inequality changed across Europe since the 2008 crisis? Where is the lowest rent-to-salary ratios? Geneva (29%) is the only European city where the rent-to-salary ratio is below 30%. Following that, there are five more European cities where single earners spend less than two-fifths, or 40%, of their salary on rent. They include Luxembourg and Frankfurt (both at 34%), Zurich and Helsinki (both at 35%), and Vienna (38%). Except for Helsinki, these examples do not mean that rent is cheap in these cities. Instead, they reflect higher salaries, which reduce the percentage of income spent on rent. Among the capital cities of the top five European economies, Berlin has the lowest rent-to-salary ratio, with residents spending 40% of their average income on rent. Paris follows the German capital at 45%. London has the highest ratio at 75%, followed by Madrid at 74% and Rome at 65%. This ratio in other major cities is as follows: Dublin (62%), Athens (57%), Amsterdam (49%), Stockholm (46%), Edinburgh (44%), Copenhagen (43%), and Oslo (42%). In the global list, other cities where the salary does not cover the rent include Bogota (120%), Mexico City (118%), and São Paulo (102%). In some cities, while the rent can just be paid, there is almost nothing left from the salary—this includes Rio de Janeiro (100%), Manila (94%), Buenos Aires (88%), and Mumbai (84%). The rent-to-salary ratio in New York is 81%, making it the highest among US cities. How much is left after paying the rent? Globally, the highest disposable incomes after paying rent are found in two Swiss cities: Geneva (€5,174) and Zurich (€4,638). The lowest is also in Europe, with Lisbon at –€202, meaning the average salary is not enough to cover the rent. In Istanbul, a single earner needs to find an extra €13 to pay the rent. Besides the two Swiss cities, disposable income after rent is also above €2,000 in six more European cities: Luxembourg (€3,725), Frankfurt (€2,726), Copenhagen (€2,421), Amsterdam (€2,194), Oslo (€2,140) and Helsinki (€2,021). An OECD report shows that bigger cities come with higher housing costs. Spending on housing and utilities has risen over the past 20 years in the EU. 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
Can you afford to live here? Europe's cities ranked by rent-to-salary ratio
Housing takes up a large part of household budgets, and this share is growing across Europe, according to Eurostat. High rent prices in city centres add extra pressure, especially for low-income earners and those on minimum wage. In some European countries and cities, rent can consume nearly an entire salary. In fact, in certain places, average net salaries are not enough to cover the rent for a one-bedroom apartment in the city centre, according to Deutsche Bank Research Institute. So, which countries and cities in Europe have the best rent-to-salary ratio? Where is rent simply unaffordable? And how do European cities compare to global ones in terms of housing costs and salaries? The Mapping the World's Prices report compares net monthly salaries and rents for one-bedroom apartments in city centres across 69 cities worldwide. Euronews Business takes a closer look at the 28 European cities included in the report along with a few others for broader comparison. Where are the highest salaries in Europe? In 2025, average monthly net salaries range from just €151 in Cairo to €7,307 in Geneva, with Zurich close behind at €7,127. This makes Switzerland the highest-paying country overall. In Europe, Istanbul has the lowest salary at €855, followed by €1,044 in Athens. People in the Northern and Western European cities are well-paid. The net salaries are above €4,000 in Luxembourg, Amsterdam, Copenhagen and Frankfurt. Rome has the lowest average salary among the capital cities of Europe's five largest economies, at €2,046. Madrid follows slightly higher at €2,193. Salaries are significantly higher in Berlin (€3,565), Paris (€3,630), and London (€3,637), with only minimal differences among the UK, France, and Germany. Salaries are also high in US cities, which make up five of the top 11 globally. Related Which career in Europe will reward you with the highest salary? The cost of love: Europe's most expensive and cheapest cities for a date Which European cities have the highest rents? Rents for one-bedroom apartments in city centres vary widely, ranging from as low as €189 in Cairo to €3,792 ($4,143) in New York. US cities dominate the top end of the scale. In Europe, the highest rent is in London at €2,732 (£2,365), while the lowest is in Athens at just €595. In Zurich, Dublin, Amsterdam, and Geneva, rents also exceed €2,000, while in Istanbul and Budapest, they remain below €900. Lisbon and Istanbul: Salary doesn't cover the rent The percentage of salary spent on rent is a more useful measure. It shows how much disposable income is left after paying for accommodation. The rent-to-salary ratio ranges from 24% in Bangalore to 125% in Cairo. A ratio of 100% means the entire salary goes to rent. Anything above that means nothing is left in the pocket or extra income is needed to cover rent. In Europe, rent-to-salary ratio differs from 29% in Geneva to 116% in Lisbon. Besides the Portuguese capital, the ratio is also slightly above 100% in Istanbul (101%). This means the average net salary is not enough to pay the rent for a one-bedroom apartment in either Lisbon or Istanbul. Single earners need to spend three-quarters of their salary on rent in London (75%), as well as in Barcelona and Madrid (both at 74%). In Milan, the ratio is also high at 71%. More than half of the average salary is also spent on rent in several other cities: Rome (65%), Dublin (62%), Athens (57%), Warsaw (56%), Prague (54%), and Budapest (52%). Related Living in debt? Savings expert shares secret to 'spring clean your finances' How has wealth inequality changed across Europe since the 2008 crisis? Where is the lowest rent-to-salary ratios? Geneva (29%) is the only European city where the rent-to-salary ratio is below 30%. Following that, there are five more European cities where single earners spend less than two-fifths, or 40%, of their salary on rent. They include Luxembourg and Frankfurt (both at 34%), Zurich and Helsinki (both at 35%), and Vienna (38%). Except for Helsinki, these examples do not mean that rent is cheap in these cities. Instead, they reflect higher salaries, which reduce the percentage of income spent on rent. Among the capital cities of the top five European economies, Berlin has the lowest rent-to-salary ratio, with residents spending 40% of their average income on rent. Paris follows the German capital at 45%. London has the highest ratio at 75%, followed by Madrid at 74% and Rome at 65%. This ratio in other major cities is as follows: Dublin (62%), Athens (57%), Amsterdam (49%), Stockholm (46%), Edinburgh (44%), Copenhagen (43%), and Oslo (42%). In the global list, other cities where the salary does not cover the rent include Bogota (120%), Mexico City (118%), and São Paulo (102%). In some cities, while the rent can just be paid, there is almost nothing left from the salary—this includes Rio de Janeiro (100%), Manila (94%), Buenos Aires (88%), and Mumbai (84%). The rent-to-salary ratio in New York is 81%, making it the highest among US cities. How much is left after paying the rent? Globally, the highest disposable incomes after paying rent are found in two Swiss cities: Geneva (€5,174) and Zurich (€4,638). The lowest is also in Europe, with Lisbon at –€202, meaning the average salary is not enough to cover the rent. In Istanbul, a single earner needs to find an extra €13 to pay the rent. Besides the two Swiss cities, disposable income after rent is also above €2,000 in six more European cities: Luxembourg (€3,725), Frankfurt (€2,726), Copenhagen (€2,421), Amsterdam (€2,194), Oslo (€2,140) and Helsinki (€2,021). An OECD report shows that bigger cities come with higher housing costs. Spending on housing and utilities has risen over the past 20 years in the EU. 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
