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Housing charity slams 'devastating' rent rises

Shelter has described the latest figures on rent prices as "devastating news" for renters.

As more people are priced out of home ownership and waiting lists grow longer, too many families are being left trapped in the unstable and expensive private rental market.

Every day Shelter hears from people who are having to cut back on essentials as they struggle to pay their rent each month. With wages flat-lining, the fact that rents have reached record highs means that even more people will find it harder and harder to make ends meet.

We need the Government to fix our rental market to provide more security and get on with building many more genuinely affordable homes.

– Roger Harding, Shelter's director of campaigns, policy and communications

Recent private rent hikes: The figures

  • Rents have reached new peaks in Wales, London, the South East, the West Midlands, the East Midlands, the North West, Yorkshire and the Humber.
  • Average rents in September ranged from £533 a month in the North East to more than double this amount - £1,141 - in London.
  • Rents have risen by 2.1% over the last year across the country, which is below the rate of Consumer Prices Index inflation at 2.7%.
  • London rents have soared by 4.4% typically in the space of a year.
  • Wales saw the next biggest annual rise, with a 3.1% hike pushing average rents to £573.
  • The East of England was the only region to see rents drop, either on the year-on-year or the monthly measures, falling by 1.4% annually.

Source: Lettings network LSL Property Services.

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Private rents soar to record high, new data shows

Private rents have reached a new high, according to research by lettings network LSL Property Services.

Private rents have reached a record high across England and Wales, according to new research. Credit: PA

Rents across England and Wales reached a record £757 a month on average in September after jumping by 1.8% month-on-month, according to LSL, which owns chains Your Move and Reeds Rains.

The announcement comes despite moves by the Government to ease first time buyers’ jump onto the housing ladder.

Home repossessions lower than expected

A survey carried out for Shelter has shown that millions of Britons are finding it difficult to keep up with rent and mortgage payments.

Despite this, figures from the Council of Mortgage Lenders (CML) show that the number of home repossessions have been much lower than expected.

The CML said that the number of home repossessions has fallen to its lowest level since 2007 in the third quarter of this year.

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Rise in mortgage costs in recent months say homeowners

  • Shelter estimates almost one million people took out a payday loan over the last 12 months to help them cover their mortgage or rent
  • Based on their figures it is estimated that around 979,000 had taken out a high-interest payday loan for this purpose
  • The charity said the number of people constantly struggling to pay their rent or mortgage had increased by 44% over the past year - 7.8 million Britons
  • 4% of rent or mortgage payers said they had fallen behind with their payments, an estimated 1.4 million people at a national level
  • Nearly 10% of those surveyed said they used an unauthorised overdraft to help them cover costs, and one in ten of these people said they did so every month
  • More than a million homeowners saw their mortgage costs increase in recent months after several lenders raised their standard variable rates

Shelter's Chief Executive urges people to get advice on payments

It's shocking to think that so many families will be starting the New Year with a huge weight hanging over them, trapped in a daily struggle to keep their home.

Payday loans may seem like a quick fix, but the huge interest charges mean things can quickly spiral out of control.

It's vital that anyone who's having difficulty paying their rent or mortgage gets advice now.

Don't wait until things reach breaking point later in the year - it could leave your family's home at risk.

– Campbell Robb, Shelter's Chief Executive

Over one million Britons falling behind with rent

Shelter's research was taken from a survey of 4,000 people across Britain Credit: Rui Vieira/PA Wire

Nearly one and a half million people in Britain are falling behind with their rent or mortgage payments, new research from Shelter shows today.

The survey of more than 4,000 British adults found that the number of people constantly struggling to pay their rent or mortgage has increased by more than 40 per cent over the past year.

The charity warned that nearly eight million people are now facing a monthly battle to pay their rent or mortgage.

Rents set to rise by up to 4% over the next year

The financial squeeze on tenants looks set to continue, with rents predicted to rise by up to 3.9% over the next year, according to a Royal Institution of Chartered Surveyors (RICS) survey.

Rents have already increased by 4.3% over the last 12 months and are likely to be driven further upwards by a "scarcity" of mortgage finance and a shortage of good-quality properties for tenants to move into, the RICS said.

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