Ten­ants pay more than half of salary

Birmingham Post - - BUSINESS -

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.

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