Unfortunately for those who have to rent, the current situation doesn’t look like it’s going to improve any time soon.
Average increase 7.5% a year
The latest data from online lettings and management company Rentify.com suggests that the cost of renting the average tenanted home will increase by 7.5% a year across the country for the next 18 years, pushing up the cost of monthly rents to astronomical sums in some areas.
But the rate of increase varies depending on location, so in some parts of Britain, where rents are currently relatively low, the picture isn’t so bleak.
London average to hit £6,135 per month
However, in London, where renting is already very costly and the only option for many, rents are expected to go up by an average of 9% a year. That would mean the current average monthly rent paid in the Smoke of £1,413, would rise to an astronomical £6,135 per month by 2033.
The means by the time someone born this year turns 18 they’ll have to shell out an average of £73,000 a year to a landlord if they want to live in the capital. That’s right, £73,000 a year!
Newcastle cheapest city on list
It’s not all doom and gloom though. In Newcastle, for example, the current average monthly cost of renting a home is £528. Rentify expect this to increase to what seems a relatively reasonable £795 per month by 2033 (relative to London at least).
As with all the figures, it very much depends on how local economies perform in towns and cities around the UK. Some areas, such Bristol, are doing well, but the rental increase predicted for the city still means that local wages would have to increase considerably to keep up with the predicted rent increases.
In Bristol the average currently shelled out on rental costs is £786 per month – or £393 per person if you’re with a partner – which certainly doesn’t seem unreasonable when local wages for North Somerset average around £28,000.
But by 2033 Rentify expect average rents to have risen to £1,487 per month in the city, which means local wages would have to rise by over 6% a year to keep up; a fairly steep increase.
Norwich, a smaller but similar provincial city to Bristol, is predicted to see a fairly astronomical increase in rents; from a current average of £781 per month to £3,391 in 18 years’ time.
Crisis times ahead
It looks like the current housing crisis is set to continue unless there’s a radical change in Government housing policy. House prices themselves rose by more than £100 a day in April to reach an average of nearly £200,000, according to the Halifax, so buying a home is moving further out of reach for many, leaving renting as the only alternative.
As George Spencer, the Chief Executive of Rentify points out, building more houses is the only solution, saying “The UK property market looks unlikely to change in the near future unless there’s a radical change in the new government’s housing policy. We have a shortage of housing and a huge amount of demand in the UK for somewhere to live. We need to build more houses in the UK, particularly in London, to stop this madness,”.
Rental increase expectations across the UK
Here are the cities in Rectify’s study, showing the current average rent per year followed by the expected average in 2033:
Greater London – £16,956 / £73,630
Oxford – £10560 / £37,536
Bristol – £9,444 / £17,849
Norwich – £9,372 /40,697
Manchester – £8,052 / £29,597
Birmingham – £7,920 / £58,033
Leeds – £7,296 /£16,966
Nottingham – £7,260 / £12,145
Cardiff – £7,164 / £12,851
Glasgow – £7,044 /£11,080
Belfast – £6,936
Newcastle – £6,336 / £9,540
Renting a property and home insurance
If you’re renting a home you still need insurance to cover you for the items you keep in it and possibly take away from the home with you too.
It’s unlikely your landlord will have insurance which includes your possessions, so if you want to make sure you can claim if the things you own are lost, damaged or stolen, you need to take out a contents insurance policy.
Always shop around to get the best deal and consider adding optional extras, such as accidental damage and away from home cover, to give you better all round cover.
If your home is your haven, you’ll want it to have the best protection. Compare home insurance quotes from our range of handpicked insurers and tailor a policy to suit you. For more information on speak to one of our experts on 0330 0600 600 or email email@example.com