Rise in cost of renting in England and Wales over year to November puts pressure on tenants' finances

This article is more than 6 years old

This article is more than 6 years old

The cost of renting in England and Wales rose at twice the pace of earnings over the year to November, placing pressure on tenants' finances and putting property ownership further beyond reach of many would-be buyers.

The average amount paid in rent stood at £753 in November, up 1.6% compared with a year earlier, according to the latest figures from the lettings agency network LSL Property Services.

The increase is twice the average rise in earnings of 0.8% over the same period, according to figures from the Office for National Statistics. The average salary is now £1,941 a month.

Rents rose fastest on an annual basis in London, where they increased by 4.4%, followed by the south-west (3.4%) and the south-east (3.2%).

Rents fell by 5.5%, or an average of £42, in eastern England, 2.8% in the West Midlands, and 2% in the north-east, Yorkshire and the Humber.

David Newnes, the director of LSL Property Services, said: "Economic reality now resembles the most optimistic dreams of last year. But for so many households, the dream of homeownership is still relegated to the imagination.

"It's not just wages. Savings rates have been swamped by inflation for half a decade, so building up even a 5% deposit is a real struggle."

Campbell Robb, the chief executive of the housing charity Shelter, said the figures were "another sign that our overheated rental market is getting out of control".

He said: "With rent rises hitting record highs this year and wages flatlining, it's no wonder that more and more households are finding themselves an illness or job loss away from losing their homes.

"Astronomical house prices mean that millions of people are finding themselves trapped in our broken rental market with little chance of ever finding a stable place to call home."