Tenants pay more than half of salary
ONE in seven private tenants in England is spending more than half their income on rent, analysis from the Local Government Association (LGA) has found.
Some 14 per cent of private renters are seeing more than half their total income swallowed up by rent, according to the association, which said this restricts people’s ability to save for a deposit to buy their own home.
The LGA is calling for the building of a new wave of rented homes “that reflect what families can actually afford – no more than a third of total household incomes”.
The LGA’s research found 43 per cent of private renters in England spend more than 30 per cent of their income on rent. It said councils should be given powers and access to funding “to resume their historic role as a builder of affordable homes”.
The LGA said this means being able to borrow to invest in housing and to keep 100 per cent of the receipts from any homes they sell to replace them.