Four out of ten under-30s are tied to leases that exceed 30% of salary | Rent real estate

Under-30s renters in the UK are facing a financial crisis as the number of renters paying an unaffordable part of their income to landlords hits a five-year high, according to research.

Four in 10 young renters are locked into expensive new contracts that exceed 30% of their salary, a level housing groups say is too much to manage.

Research by property consultancy Dataloft has found that while London has the highest rent levels in the UK, places like Rotherham, Bolton, Salford, Walsall and Dudley have the worst affordability for young people since the start of the coronavirus pandemic.

The data suggests that under-30s spend more of their income on rent than other working-age groups. With a lifestyle that means they have fewer dependents and are more willing to move, many feel they can afford to pay more for rent.

Rapidly rising rents, which agents and real estate companies attribute to a lack of supply, are forcing potential tenants to bid above the asking price or renew contracts at much higher levels as people are willing to bid more than the advertised price just to get around to secure a rental property.

The rent crisis faced by the under-30s is adding pressure on their finances as households face soaring energy and food bills and inflation is at a 40-year high.

Nick Gallent, professor of housing and planning at University College London, told the BBC that young people now locked into expensive rents could cause future problems because “their lives are evolving but they are having to live with instability and uncertainty”. . He said, “Despite all the economic woes, house prices and rents continue to push up.”

In one in six local authorities in England, Wales and Scotland for which sufficient data was available, most young renters spent more than 30% of their income on their housing for the year to the end of June, according to an analysis of data from Dataloft.

The Department for Leveling, Housing and Communities said it recognized people were facing pressures on the cost of living and that paying rent was probably a tenant’s biggest monthly expense.

“That’s why we’ve taken action as part of our £37 billion support package to help households facing rising costs,” it said.

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