Private rent rises through the roof

Many renters are now in arrears due to the pandemic

PRIVATE rental prices have continued to rise to a record high. Figures from the Office for National Statistics have revealed that the cost of renting in England is up by 10.2% in the last five years, while Wales has seen the cost increase by 5.7%.

Separate figures from the ONS show that this translated to an average monthly rent of £725 across all types of property in England in 2019/20, which is the highest ever recorded.

While similar figures are unavailable for Wales, data from StatsWales shows that the average two bed property in the country cost £525 to rent in 2019.

That was also the highest price on record at the time, and the ONS figures suggest both have climbed even further since.

The figures go up to November 2020, and charities have warned that the pandemic is having a significant impact on the ability of private renters to afford their rent, which will only get worse if private rental prices continue to increase.

Polly Neate, chief executive of Shelter, said: “Private renting is already grossly unaffordable, but with the pandemic decimating people's incomes, hundreds of thousands of renters can no longer make ends meet. Many have had to turn to benefits for the first time, only to find the support available doesn't come close to covering most rents.

“Covid-19 is turbo-charging a crisis that's been decades in the making. The failure of consecutive governments to build new social homes is the reason millions of people are trapped in private renting. And as demand has risen so has the price tag. In fact, private renters spend more of their income on housing costs than anyone else.

“To ensure people can access the financial help they desperately need to keep hold of their home in this pandemic, the government must scrap the benefit cap. But this remains a short-term fix; the one thing that will end homelessness for good is building enough genuinely affordable social homes.”

December saw a surge in people seeking advice due to issues with their privately rented housing, with Citizens Advice receiving a request for renting advice every two minutes.

A recent report by the charity network revealed that half a million people are now behind on their rent because of the pandemic - with one in three private renters having lost their source of income since Covid19 struck.

Citizens Advice estimate that it will take them seven years to help them pay it all off.

A ban on evictions has been in place during most of the pandemic and has been extended again during the third national lockdown.

The ban prevents landlords from starting court proceedings against the tenants.

Lauren Brown, a caseworker for Citizens Advice in Coventry, said:"We're seeing an increasing number of people come to us for help with rent arrears.

“This includes people who only six months ago had a well-paid job but were made redundant due to the pandemic and are finding it very difficult to find a job on a similar level.

“In some cases, they have built up arrears despite having sought and followed advice to claim the correct benefits and reduce expenses.

“When this hasn't been enough they have then had to go on to sell their phone and other belongings or even gone without food - in an attempt to keep up payments on their rent and other bills.

"If the eviction ban ends, for some families this will mean going from having a home, to living out of a bag.

“They'll have to start their lives all over again - all due to an unprecedented situation that was totally out of their control."