You are here: Home - Mortgages - Buy To Let - News -

Flatshares now unaffordable for renters

Written by:
Rising rental prices are leaving many tenants unable to afford even shared properties, new market data has warned.

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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week