Rip-off rents: Britain's priciest places to be a tenant
03-17-2015
The UK housing supply crisis hits tenants in the pocket as rents soar, but where are the most expensive places for lettings?
The High Street in Reigate, Surrey
The high street in Reigate, Surrey, one of the most expensive rental spots in the UK, according to the website EasyRoommate Photo: Clara Molden
Anna White
By Anna White, Property correspondent
Guernsey is the most expensive part of the UK in which to rent a room in a shared house or flat due to a shortage of property on the island and a restriction on construction projects.
The chronic housing shortage in Great Britain, blamed for last year's spike in house prices, is also driving up room rents in the most popular areas and cities, according to the latest rental index compiled by the flatshare and houseshare website, EasyRoommate.
The research found that rents in Guernsey were the most expensive in Britain at £737.1 a month in 2014, followed by London where prices rose by 6.2pc to £651 from 2012 to 2014.
"Given that it's an island with restrictions on construction, there's a shortage of property to rent," said Russell Quirk, chief executive of online estate agent, eMoov. "Particularly as many homes are used for holiday lets."
High demand and high house prices in the English capital have forced more people to remain in rented accommodation rather than getting on the property ladder, with 10 tenants competiting for every room in 2014 in London, compared to six for every room in 2012.
Sky high rental prices were highlighted last week when a Mayfair flat the size of a bathroom has been rented within 40 minutes of appearing on the market. The tenant paid £10,000 in advance to secure the tenancy for the 301 sq ft flat - and didn't even view it in advance. She moved in two hours later.
"The city attracts people from across the globe, but the housing supply hasn’t kept up with demand," said Karim Goudiaby, chief executive of EasyRoommate. "The cultural norm hasn't just shifted from buying to renting, but now Londoners are flatsharing more than ever before."
The top five most expensive places in which to rent after Guernsey and London, are Woking, the Mole Valley, and Reigate and Banstead (all in Surrey), where prices are driven by the popularity of living in the South East London commuter belt.
However, the supply-demand imbalance is more acute north of the border, the study showed.
For every available room in Edinburgh, there are approximately thirteen people seeking a room. Glasgow has a rate of twelve people per one available room.
Based on EasyRoommate users, the majority of people who share flats in the UK are professionals (57pc) followed by students (22pc). Retirees make up less than 1pc of the type of people sharing a flat.
The flatshare index comes just days before this week's Budget in which the Chancellor is expected to address the housing supply crisis.
As pre-election campaigning crescendos ahead of May the opposition leader, Ed Miliband, has come under fire for touting rent capping reform.
Fears over the introduction of rent capping under a Labour government have deterred landlords from expanding theiir rental portfolio.