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Landlords cash in as rents rise twice as fast as wages

It has come to light that the cost of renting property in the UK has risen twice as fast as wages in the 11 months to November.

According to LSL Property Services, the average rent now stands at £753 per month, signalling a 1.6 per cent increase from last year.

A report by the Office for National Statistics shows that this twice the 0.8 per cent increase in wages over the same period, taking the average monthly pay packet to £1,941.

Furthermore, the report shows that landlords made a record 8.9 per cent return over the last twelve months as demand continues to outstrip supply. David Newnes, from LSL Property Services commented: “Homes of all tenures have become more expensive for more people, that’s partly because the UK is poorer than it was five years ago.

“But fundamentally, housing is also becoming more expensive because there aren’t enough homes to keep up with an expanding population.”

Labour’s Shadow Housing Minister, MP Emma Reynolds said: “These figures show that rents are rising twice as fast as wages as the cost-of-living crisis under David Cameron continues.

“The housing market isn’t working because there simply aren’t enough homes around for young people and families that want to buy but are forced to rent. The Tory-led Government has done next to nothing to increase housing supply and is presiding over the lowest levels of house building in peacetime since the 1920s.”

Meanwhile, surveyors have forecasted that house prices will rise by another 8% next year due to the shortage of homes coming on to the market.