North Easterners Stuck In The Rent Trap
31 January 2013, 06:00
Yearly private rents have risen by almost £300 year-on-year on average across England according to Shelter, with Middlesbrough the highest in the North East
Shelter's report argued that the private rental sector is "no longer fit for purpose'' and outgrown its role in primarily providing accommodation for students and young professionals.
Rents rose by 2.8% or £297 annually across England between 2011 and 2012, leaving tenants with little or no leftover cash to save up to buy their own home as wages remained static.
The average monthly private rent in England rose to £793 last year - stats for each of the North East local authorities can be found below
Rents have soared as would-be home buyers have remained trapped in the rental sector, either because they cannot meet lenders' toughened borrowing criteria or raise the typical 20% deposit.
As more tenants have remained privately renting for longer, this has placed more demand on the sector, pushing rents up even higher.
No Cash Left Over At The End Of The Month
Shelter's research also showed that the extra pressure caused by rental increases is leaving tenants with little cash to save for a deposit. Shelter's own research from 4,300 renters found that more than half (55%) have £100 or less left over cash month after covering rent and regular bills.
Almost six in 10 (58%) tenants surveyed said that they are so financially squeezed that they are unable to put any cash away in savings, leaving them with little hope of raising a deposit to buy a home.
North East Stats
|LOCAL AUTHORITY||RENT £ +/-||AVERAGE MONTHLY RENT £
(2 BED HOUSE)
|REDCAR & CLEVELAND||+10||£467|