Monday, Jun 28, 2010

The figures seem on the high side but the overall picture is probably correct

Channel 4: UK room rents 'highest in Europe'

"It costs an average of £348 a month to rent a room in a shared property in the UK, 75% more than in Spain, where rents average just £199 a month, according to flatshare website Easyroommate.co.uk. France was the second most expensive country in which to rent a room, but at an average of £285 a month rents were still considerably cheaper than in the UK, while in Italy they averaged £282 a month." The explanation is drivel of course: "The group blamed the high cost of renting a room in the UK on the lack of mortgage finance currently available, which it said was forcing potential first-time buyers to continue renting, driving up demand." In the long run the cost of renting will be approx. same as cost of buying with a mortgage.

Posted by mark wadsworth @ 11:19 AM (1340 views) Add Comment

4 Comments

1. simon68 said...

The reason for UK high rents is too generous housing benefits where public purse is used to feed the not loan shark but BTL shark.

Monday, June 28, 2010 11:45AM Report Comment
 

2. mrflibble said...

That would be because the quality of life here is soooo much better...

Monday, June 28, 2010 12:07PM Report Comment
 

3. ontheotherhand said...

If lack of mortgage supply was correlated we would have seen skyrocketing rents over the last 2 years and instead we've seen them fall. When they got coverage on Channel 4 in June '09 they explained 'a glut of rental properties coming on to the market during the past year had forced down average rents' errr. So they seem to have forgotten the lesson from last year - if you want to get rent down, a quick way is to have falling house prices...

Monday, June 28, 2010 12:20PM Report Comment
 

4. mark wadsworth said...

S68, good point. Subsidising rents at the same time as subsidising mortgages just adds to the distortions.

reCaptcha: tenant grubbing

Monday, June 28, 2010 02:01PM Report Comment
 

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