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| Private rents price out many of Britain's poorer families | Private rents price out many of Britain's poorer families |
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| Soaring rents have put a third of the country "effectively off limits" to lower income families who cannot afford the sums now being charged for two-bedroom homes. | Soaring rents have put a third of the country "effectively off limits" to lower income families who cannot afford the sums now being charged for two-bedroom homes. |
| According to the thinktank the Resolution Foundation the effect is being felt far beyond London and the south-east, with "affordability black spots" across the country including Aberdeen, Exeter, south Cambridgeshire and Warwick. | According to the thinktank the Resolution Foundation the effect is being felt far beyond London and the south-east, with "affordability black spots" across the country including Aberdeen, Exeter, south Cambridgeshire and Warwick. |
| The report, Home Truths, found that in 125 of Britain's 376 local authorities, a couple with a net income of £22,000 a year and one child would have to spend more than 35% of their income to rent the least expensive two-bedroom property, making it unaffordable to live there. In 10% of local authorities rent would soak up more than half the family income after tax. | The report, Home Truths, found that in 125 of Britain's 376 local authorities, a couple with a net income of £22,000 a year and one child would have to spend more than 35% of their income to rent the least expensive two-bedroom property, making it unaffordable to live there. In 10% of local authorities rent would soak up more than half the family income after tax. |
| In 2012, the Joseph Rowntree Foundation calculated that a family with one child needed £19,510 after housing and childcare costs to have enough money for basic necessities. | In 2012, the Joseph Rowntree Foundation calculated that a family with one child needed £19,510 after housing and childcare costs to have enough money for basic necessities. |
| The foundation's minimum income standard assumes that, for instance, a couple with two children need to spend £103 a week on food, £41.20 on clothes and shoes and £60.50 to keep and run a car. | The foundation's minimum income standard assumes that, for instance, a couple with two children need to spend £103 a week on food, £41.20 on clothes and shoes and £60.50 to keep and run a car. |
| The Resolution Foundation said high rents mean there are no local authorities where a family taking home £22,000 a year can afford the rent on a two-bedroom property and have that minimum amount left, unless they qualify for housing benefit. Even families with a net income of £28,000 a year would be priced out of one in six areas of Britain, according to the report. | The Resolution Foundation said high rents mean there are no local authorities where a family taking home £22,000 a year can afford the rent on a two-bedroom property and have that minimum amount left, unless they qualify for housing benefit. Even families with a net income of £28,000 a year would be priced out of one in six areas of Britain, according to the report. |
| The monthly rent on a two-bedroom property ranged from £340 in the cheapest part of the country – Blaenau Gwent in south Wales, representing 18% of a £22,000 net income – to £2,380 in the most expensive area – the London borough of Kensington and Chelsea, equivalent to 130% of the earnings. | The monthly rent on a two-bedroom property ranged from £340 in the cheapest part of the country – Blaenau Gwent in south Wales, representing 18% of a £22,000 net income – to £2,380 in the most expensive area – the London borough of Kensington and Chelsea, equivalent to 130% of the earnings. |
| The thinktank said that while the government's schemes to kickstart the housing market might help thousands of people to buy homes, they would do little to meet the needs of low to middle-income families who were increasingly faced with no option but to rent privately. | The thinktank said that while the government's schemes to kickstart the housing market might help thousands of people to buy homes, they would do little to meet the needs of low to middle-income families who were increasingly faced with no option but to rent privately. |
| Vidhya Alakeson, the report's co-author, said there was an urgent need for homes for low and middle-income families. "They are increasingly unlikely to be able to afford the deposit to buy their own home, so turn to the private rented sector – but here too they are now struggling to find decent, affordable housing," she said. | Vidhya Alakeson, the report's co-author, said there was an urgent need for homes for low and middle-income families. "They are increasingly unlikely to be able to afford the deposit to buy their own home, so turn to the private rented sector – but here too they are now struggling to find decent, affordable housing," she said. |
| "Only an increase in the stock of housing for rent can improve the situation, and the government should make this a strategic priority. People should not have to choose between decent, affordable housing and other essentials in life such as clothing, food or furniture – yet that is increasingly what is happening as housing costs escalate." | "Only an increase in the stock of housing for rent can improve the situation, and the government should make this a strategic priority. People should not have to choose between decent, affordable housing and other essentials in life such as clothing, food or furniture – yet that is increasingly what is happening as housing costs escalate." |
| The housing minister, Mark Prisk, said the report was "alarmist", "factually flawed" and ignored government measures such as the £1bn Build to Rent fund and £10bn in loan guarantees to build new homes specifically for private rent. | The housing minister, Mark Prisk, said the report was "alarmist", "factually flawed" and ignored government measures such as the £1bn Build to Rent fund and £10bn in loan guarantees to build new homes specifically for private rent. |
| "It suggests that rents are soaring when in fact they have fallen in real terms," he said. "And it fails to recognise that housing benefit provides a safety net which ensures that up to a third of private properties in most areas are affordable to low-income families." | "It suggests that rents are soaring when in fact they have fallen in real terms," he said. "And it fails to recognise that housing benefit provides a safety net which ensures that up to a third of private properties in most areas are affordable to low-income families." |
| Housing benefit is available to some low-income families, with payments based on savings and earnings and family circumstances. The Resolution Foundation said the proportion of households receiving housing benefit who are in work had risen from 10% of recipients in 2008 to 19% in 2012, although most recipients were workless households living in social housing. Nearly two-thirds of working-age households getting housing benefit live in the socially rented sector. | Housing benefit is available to some low-income families, with payments based on savings and earnings and family circumstances. The Resolution Foundation said the proportion of households receiving housing benefit who are in work had risen from 10% of recipients in 2008 to 19% in 2012, although most recipients were workless households living in social housing. Nearly two-thirds of working-age households getting housing benefit live in the socially rented sector. |
| Asking price record | |
| House sellers' asking prices have hit record highs for three months in a row. Prices rose by 0.3% month on month in July to reach a new peak of £253,658 on average after records were also set in May and June, the website Rightmove said. It reported evidence of a "broader-based recovery", with prices up annually in all regions across England and Wales – the first time this has happened in nearly three years. New sellers are asking about 4.8% more than they were a year ago, and London asking prices have soared by 12% in a year to reach £515,379 on average. | House sellers' asking prices have hit record highs for three months in a row. Prices rose by 0.3% month on month in July to reach a new peak of £253,658 on average after records were also set in May and June, the website Rightmove said. It reported evidence of a "broader-based recovery", with prices up annually in all regions across England and Wales – the first time this has happened in nearly three years. New sellers are asking about 4.8% more than they were a year ago, and London asking prices have soared by 12% in a year to reach £515,379 on average. |