{"id":82638,"date":"2024-06-27T16:19:32","date_gmt":"2024-06-27T16:19:32","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/27\/rent-increase-how-will-we-afford-children\/"},"modified":"2024-06-27T16:19:32","modified_gmt":"2024-06-27T16:19:32","slug":"rent-increase-how-will-we-afford-children","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/27\/rent-increase-how-will-we-afford-children\/","title":{"rendered":"Rent increase: ‘How will we afford children?’"},"content":{"rendered":"
\"Rent<\/div>


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By\u00a0Alix Hattenstone, Miguel Roca-Terry and Jonathan Fagg,\u00a0<\/span>BBC England Data Unit<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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\"Delia-Ioana\/BBCDelia-Ioana\/BBC News<\/span><\/div>\n<\/div>\n

Delia-Ioana said she can’t imagine being able to afford a mortgage<\/figcaption><\/p>\n<\/figure>\n
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The average cost of renting privately in England has risen by nearly a quarter since the last general election.<\/p>\n

In December 2019 rent cost \u00a31,064 a month on average according to the Office for National Statistics (ONS<\/a>). By May 2024 this had risen by 22% to \u00a31,301 for new and existing tenancies.<\/p>\n

Renters have told the BBC they have settled for mouldy properties, sofa-surfed or moved back in with relatives.<\/p>\n

The National Residential Landlords Association blamed a \u201cchronic shortage\u201d of private rental homes on high interest rates prompting landlords to leave the market.<\/p>\n

Hundreds of people have been in touch with the BBC about rent via Your Voice, Your Vote<\/a>.<\/p>\n<\/div>\n

‘All of us have been homeless’<\/h2>\n<\/p>\n
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Delia-Ioana, a 24-year-old freelance production assistant, pays \u00a3567 per month for a flat share in Bristol.<\/p>\n

She said it took eight months for a dripping tap to be fixed, impacting her water bills, and the walls were mouldy and damp with mineral deposits.<\/p>\n

Delia-Ioana plans to move out soon, but said rent was often too expensive, and she worried about the future.<\/p>\n

\u201cI was looking at my friends \u2013 all of us have been homeless at some point. A floor here, a sofa there,\u201d she said.<\/p>\n

\u201cHow are we going to afford to have children if we can\u2019t afford a house?\u201d<\/p>\n

Average rents in Bristol rose 34% between December 2019 and May 2024, from \u00a31,312 to \u00a31,759 per month, the eighth largest increase among local authorities in England.<\/p>\n<\/div>\n

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\"DeliaDelia Ioana\/BBC<\/span><\/div>\n<\/div>\n

Delia-Ioana said every room in her flat share has mould in<\/figcaption><\/p>\n<\/figure>\n

How has rent changed in your area?<\/h2>\n<\/p>\n

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Why has rent been increasing?<\/h2>\n<\/p>\n
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Between December 2019 and May 2024, average private rent in England rose by 22% according to the Office for National Statistics (ONS). <\/p>\n

It used a “geometric average”<\/a> to account for differences in property types and changes in the rental markets. <\/p>\n

Across a similar period (April 2019 to April 2024) the Institute for Fiscal Studies estimated UK earnings rose by 4-6% in real terms<\/a>.<\/p>\n

The Bank of England started raising interest rates in December 2021, pushing mortgages up. It has kept them at 5.25% since last summer, aiming to slow the pace of rising prices.<\/p>\n

Richard Donnell, property company Zoopla\u2019s executive head of research, said these increases have made it harder for potential first-time buyers.<\/p>\n

According to Mr Donnell there are fewer private landlords, meaning the total number of rental homes in the UK has barely changed since 2016 – but demand has continued to soar.<\/p>\n

\u201cThe big increase in demand happened after the pandemic ended and the economy reopened,” he said. <\/p>\n

“You had this big return of people to cities, the international borders reopened.\u201d<\/p>\n

He said the growth of working from home has made cheaper areas outside big cities more appealing. <\/p>\n<\/div>\n

Where has rent increased the most?<\/h2>\n<\/p>\n
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London has the highest average rent in England. But Tameside in Greater Manchester saw the largest percentage increase, up by more than 40% – from \u00a3555 in December 2019, to \u00a3780 in May 2024. <\/p>\n

Six Greater Manchester local authorities were among the areas with the biggest percentage rises in England.<\/p>\n<\/div>\n

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‘It was like a bidding war’<\/h2>\n<\/p>\n
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Luisa, a civil servant renting in Tameside, lived with her two adult children in a three-bedroom house for \u00a3695 per month in 2022.<\/p>\n

On 25 September that year, her landlord sent her a letter saying he was selling the property. He cited government decisions, interest rate increases, rising insurances and legislation he said unfairly tackled landlords.<\/p>\n

Two days earlier, then Prime Minister Liz Truss\u2019s chancellor Kwasi Kwarteng shared a \u2018mini budget\u2019<\/a> intended to stimulate economic growth.<\/p>\n

This included \u00a345bn of unfunded tax cuts – now mostly reversed. Following this, inflation and interest rates increased.<\/p>\n

A Liberal Democrat spokesperson blamed “Liz Truss’ botched budget” for “driving up rents for tenants” and a Labour spokesperson said “time and time again, the Tories have failed to stand up for renters”. <\/p>\n

A Conservative Party spokesman said \u201cCovid and the war in Ukraine hiked up inflation and put pressure on renters, but we have got inflation down to normal levels\u201d, adding they were committed to creating a fairer market for renters.<\/p>\n

Luisa spent four months looking for somewhere to live. <\/p>\n

\u201cPeople were offering over the asking price or six months\u2019 rent up front. I wasn\u2019t in a position to do that,\u201d she said.<\/p>\n

\u201cIt was like a bidding war \u2013 I\u2019d turn up and there was a block viewing with about eight to 10 different people there.\u201d<\/p>\n

Luisa rented the sixth house she viewed for \u00a3900 per month. <\/p>\n

She said: \u201cI feel sorry for my children because my daughter\u2019s 20 and at uni, my son is 26 \u2013 he has to help me out with rent. He\u2019s unable to save up for his future.\u201d<\/p>\n<\/div>\n

How does your area compare to the rest of England?<\/h2>\n<\/p>\n

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What do the different parties promise on rent?<\/h2>\n<\/p>\n
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