Tenants in Wales are really feeling the pinch after seeing a reduction in average income, meaning they earn less than tenants anywhere else in the UK, new research says.
Data from June’s 2012 HomeLet Rental Index shows tenants in Wales have seen their annual income drop by 7.2% over the past year. Additionally, the latest report from HomeLet shows Wales has experienced the highest rise of unemployment in the UK after increasing by 3.3% over the past year to 9.8%.
The private rented sector in Wales also appears to be waning after average rental amounts decreased by 3.3% over the past year. At £555 a month, Wales is now the second cheapest region in the UK to rent a home.
Ian Fraser, HomeLet’s Managing Director, said: “It appears long term unemployment and decreasing average tenant income is having a real effect on the financial stability of Welsh tenants. This is evident in HomeLet’s Rental Index, where average tenants’ incomes are now the lowest in the UK.
“With the Welsh property market struggling to recover and likely to remain subdued throughout the rest of 2012, residents are finding it difficult to afford a home. This correlates to the increasing number of tenants in England and Wales who are experiencing rental arrears, suggesting the UK population is facing real financial hardship, not only with getting on the property ladder, but with living costs in general.”
Despite rents decreasing, the drop in income is considerably more, meaning Welsh tenants are feeling the financial pinch even more. With such a difference, tenants are constantly struggling making them more out of pocket.
With over 100,000 tenants struggling with severe rent arrears in England and Wales according to a report released by Templeton LPA, it appears increasing rents and falling wages are having an impact on the financial stability of private tenants. In the past year rent has increased by 2.4%, while average tenant income has decreased by 0.6%.