DESPITE the UK’s housing market finally showing signs of slowing down and even the prospect of lower prices, welcomed by aspirant young homeowners, the rental market continues to balloon, with many workers forking out substantial percentages of their wages on rent alone.
Across the country the average price of a new tenancy on a one-bedroom home is now €940 per month which would take up on average 48 per cent of a young workers salary. In London the figures are even more dramatic with people spending an average of 58 per cent of their wages on having a roof over their heads.
The development has impacted society as a whole, with many now moving into flat-shares and the proportion of single people living alone declining significantly. Particularly affected are tenants whose leases are up for renewal, who are facing steep annual increases of 5.7 per cent.
The unfortunate news for those trying to save up to buy a home is that rents are expected to increase faster than house prices throughout the next five years. Astronomically high house prices and tough tests for mortgage eligibility have meant that many people who would be typically taking their first steps on to the property ladder are instead being forced to rent and contribute to the escalating costs.