Rents Set To Rise In Dorset
10:14am 5th November 2012
Years of not building enough homes have led to rising rental and house prices in Dorset, according to research by the National Housing Federation.
They claim many families are struggling to pay for their home and more could start to rely on Government support to pay their rent in the next few years.
Private rents are set to increase significantly faster than house prices across England and the Federation's Home Truths report warns that the South West is no exception. Between 2012 and 2020 rents in the region are predicted to rise by almost half (48%), with the average monthly rent moving from £661 in 2012 to £981 in 2020. This puts the South West fourth in the country and ahead of the national average (47%). The steepest annual increase in the South West (7.6%) is predicted to come in 2016.
If the regional increase occurs equally across all areas, the average rent throughout Dorset would rise by £319 by 2020.
Home Truths 2012 for England, found that:
- The cost of privately renting a home has risen by 37% in the past five years3, and is set to soar a further 35% over the next six years1. In five years that means they will be a third, 29%, higher than they are now4,
- Private rents are likely to be fairly stable through 2013 but could see steep increases from 2015 to 2018 of around 6% a year as interest rates rise and house prices increase.
- 417,830 more working people, an 86% increase since 2009, are now reliant on housing benefit to help them pay the rising rents on their home 2.
- The weakness of the economy will see modest falls in house prices into 2013, but demand conditions will support renewed house price growth of 5-6% a year across England from 2015 to 20175.
- In 2011 390,000 new families were formed, but only 111,250 new homes were built6, however
- House building starts will recover only gradually, from 100,000 homes this year to 140,000 in 2014, but increases will flatten out from around 2016/20177.
Jenny Allen, South West lead manager for the National Housing Federation, said: 'The housing market is at the point of no return. Not only are house prices set to move further out of reach but rents are set to rise, making it even harder for families in Dorset to afford their home.
'Time is running out to fix the undersupply of housing and we face the very real prospect of a generation who are priced out of renting a home in the county, let alone buying one.
'What's more, as Home Truths shows, even working families are increasingly reliant on housing benefit to help pay their private rent. We urgently need to tackle the chronic undersupply of new homes across the South West, to ease the financial pressure for families and Government.'