New analysis from one of the largest independent estate agents in the UK, Robert Irving Burns (RIB), has shown that rent combined with utility bills now stands at close to two thirds (63%) of the average income, outside of London. 

Although energy prices have been capped, a toxic combination of rising costs for landlords through inflation, increasing demand as would-be buyers are priced out of the mortgage market and a lack of available stock has created a perfect storm in the rental market, which could see rents rise even further in the New Year. 

Antony Antoniou, managing director at RIB, argues: “The only real answer to unaffordable rents is that the Government must do more – they need to ease the housing shortage and improve the quality of our housing stock. One way to do this is to simplify the planning process and encourage the long-term investment or holding of property by developers. The creation of planning classes or Government assistance for properties which are built to let rather than sale, would de-risk and encourage investment into this sector.

“Housebuilders are ready and able to address this challenge, but this is the first time in decades where Government assistance in that sector has been taken away. The industry could grind to a halt as more and more developers go into administration (up 75% year-on-year) - due to skyrocketing material and energy costs, planning delays and fiscal uncertainty. The time to act is now.”