Flatshares now unaffordable for renters
A study into the London market said that those sharing a flat were typically spending £100 more than they could afford each month.
London is the most expensive place in the UK to rent a room, according to property website EasyRoommate. The average monthly cost of a flatshare in London is now £692.30 and rising.
Across the year this equates to an extra £1,128, the firm said.
The second most expensive place for flatshares was Oxford, where the typical room costs £571.30 per month. Renters in the city also said this was more than they could afford.
Oxford was home to the biggest rise in room rental prices in the last three years, as properties had increased by 29%. In London prices rose 13.9% during the same period.
Your Mortgage reported last month how there is growing evidence that many buy-to-let tenants are reaching an affordability limit and unable to cope with further rent rises.
EasyRoommate chief executive Albin Serviant said rising house prices, poor supply and high demand were making it increasingly difficult for renters.
“There is an increasingly competitive property market at play – from skyrocketing housing prices to the supply/demand imbalance,” he said. “This is having a palpable impact on the rental sector and flatsharers, and our latest research highlights just how challenging it can be.
“There is a pressing need to tackle the housing crisis to mitigate inflation with property prices and a fundamental role for the government in addressing this.”