In its first ‘Private Rent Watch’ report the housing Charity Shelter says that 55% of local authority areas have a median private rent for a two bedroom house that is more than 35% of median take home pay.
This level of rent is considered unaffordable according to other studies says the report.
No wonder people have got no money to spend in the shops!
The report draws on Valuation Office Agency data collected over a full year and published on 29th September 2011.
The areas with the least affordable private rents are unsurprisingly found in the London region, especially inner London boroughs.
London private rents at Â£1,360 are just about 2.4 times the average outside London of Â£568.
Some of the highest rents can also be found in more rural areas such as
South Northamptonshire and Rushcliffe
Areas with good commuter transport links to the capital also command higher rents.
The median rent in 29% of authorities is more than 40% of median take home pay and in 8% of authorities median rent is 50% of median take home pay.
In certain areas of London median rent is 60% of median take home pay.
But this is not just a South East phenomenon. In the South West only five out of the 34 authorities had affordable median rents.
With a shortage of social housing and houses generally priced out of the reach of ordinary people to purchase, many are being forced to rent. But now it seems that people are going to be priced out of renting an appropriately sized and located home as well.
As we have said before, more and more people will be forced to take accommodation which is substandard to their needs and, in some circumstances, substandard to the law.
And all in the name of keeping house prices high to prevent a house price slump that would wipe the banks out. What a mess the politicians and bankers have got us all in to and although we keep paying them massive salaries and bonuses they still fail to help the people that actually matter.
Then they all wonder why people are not spending on the high street in order to kick-start the growth the bankers and politicians need to keep the ‘growth’ economy lining their pockets.