Private rent costs in the UK are the highest in European Union and take up more of peoples earnings, study’s have found.
The average rent in the UK is almost double that of the European average, with UK renters paying out about 40% of their earnings compared to 28% in the mainland. Even in countries with similar costs like Holland and Germany, the rents here are up to 50% higher.
Along with the highest renting prices, Britons are also having to deal with having the least secure tenancy agreements.
David Orr, from the National Housing Federation, told the Huffington Post: “British renters get a raw deal in comparison to their continental counterparts. Not only do they face crippling rents, but renters in the UK have almost no certainty about whether they will be able to stay in their home from one year to the next.
“How can we expect people to raise families, start businesses or save for their first home if they don’t even know where they will be able to afford to live?”
Under investment in housing is one of the factors blamed for the current crisis.
“High rents are just one symptom of the housing crisis, we are simply not building enough due to under investment and problems with the land market. Housing associations are already helping people across the housing market meet their aspirations, including private renters.
“But they want to do more. By 2033 they want to build 120,000 new homes of all types every year. The Government can empower housing associations to do this by freeing up land and providing proper investment.”
Emma Reynolds, the shadow Communities and Local Government secretary, told the Independent: “The growing housing crisis means a whole generation of young people and families are paying record rents while their aspiration of home ownership becomes a distant dream.”
In contrast to the UK, the government in Berlin have recently introduced a cap on rent in the city. Landlords are now banned from increasing rent to new tenant above the average rent price. It is hoped that this will help to prevent soaring costs and rent crisis that have felt in other major cities around the world.
By Fiona Carty