UK Rents Almost Double the Continental Average

The rental market in the UK is reported as having the highest average rental figures within Europe.

According to the National Housing Federation, UK rents are almost double the continental average at £750 per month in comparison to the European average of £400 per month.

The value of the Buy-to-Let market nationwide is nearing 1 trillion.

It is also reported that private rent currently takes up 40% of families income, while the European average is 28%. In Europe around 17 minutes per hour worked are spent on rent, while in the UK this figure is 23 minutes in every hour worked.

The growing demand for housing is pushing the rental prices up and making it increasingly harder for the younger generation to get on the property ladder. Although the UK has introduced schemes such as Help-to-Buy, the UK has persistently under-invested in housing in comparison with European counterparts.

Statistics from the National Housing Association state between 1996 and 2011, the UK invested 3% of national GDP in housing, while Germany invested 6% and France 5%. We would need to build 245,000 new homes a year to keep up with the growing demand.

David Orr, Chief Executive at the National Housing Federation commented:

“High rents are just one symptom of the housing crisis, we are simply not building enough due to under investment and problems with the land market. Housing associations are already helping people across the housing market meet their aspirations, including private renters, but they want to do more. By 2033 they want to build 120,000 new homes of all types every year. The Government can empower housing associations to do this by freeing up land and providing proper investment.”