UK Housing Shortage Acute; Study Says Renters Paying Half Their Earnings On Housing

Britain’s housing shortage is getting worse. Recently, a group of campaigners urged the David Cameron Government to "get serious" on the housing crisis after a government report revealed that private renters in England are spending almost half their earnings on paying rent. According to housing charity, Shelter, private renters are being forced to carry the burden of “dramatic” housing shortage in the country. It said tenants across England are spending an average 47 percent of their after-tax income on rent.

Roger Harding, Shelter’s Director of Communications, Policy and Campaigns said the findings demonstrate how an entire generation has been forced to pay expensive rents . “As these new figures starkly show, private renters are bearing the brunt of our dramatic housing shortage,” he said. Worse is the case with London’s renters who spend an average of 73 percent of their pre-tax income on rent, according to the annual English Housing Survey published in February.

In the latest Housing Survey published by the Department for Communities and Local Government with 2013-2014 as the base year, it has been revealed that private renters are paying an average 52 percent of their pre-tax earnings on housing, and it marked a 4 percent increase from the 48 percent recorded in 2003.

In a press release, Shelter said the survey’s findings demonstrate how it is difficult for younger people to save for a house. “The English Housing Survey highlights how the ever-rising rents are making the effort to save for a home of their own, almost impossible. The proportion of 25-34 year olds who own their own home has fallen dramatically from 59 percent to just 36 percent over the past decade,” the housing charity said.

London Rents

For tenants in London, the rents are always astronomical, with people spending an average of 73 of their pre-tax income on accommodation. For those on housing benefit, the costs equal to 60 percent of the gross earnings. For people in the age group between 16 and 24, rental costs made up 88 percent of income without benefit payments and 81 percent when that was included.

A consortium of housing charities called "Just Fair" also published a report arguing that England’s housing crisis amounts to a breach of international human rights. Its report, published in April-"Protecting the Right to Housing in England: A Context of Crisis" argued that the U.K being a signatory to the International Covenant on Economic, Social and Cultural Rights it has a legal obligation to provide adequate standards of living.

Meanwhile, skyrocketing housing costs in London are forcing many Londoners to seek cheaper accommodation on boats, with more such boats putting pressure on the city's historic network of rivers and canals. For some people, sleeping in a colourfully painted narrow boat or barge can be tempting. The cost of a boat is just a fraction of the price of a brick and mortar house. Jim Bryden, who lived aboard a boat with his girlfriend, and a pet dog for two years. said, he met many people who ended up on a boat because they had two weeks' notice to leave their flat and had to buy a boat for £10,000.

(For feedback/comments, contact the writer at k.kumar@ibtimes.com.au)