Tenants will have to earn an average salary of £23,100 to meet the Government’s new ‘affordable’ rent, the Hometrack property consultancy has revealed.
The amount is only just short of the average UK wage of £24,752.
Under the new affordable rent programme, housing associations will be able to charge rent at up to 80% market value, which is far higher than current housing association rents, in return for an up-front grant which they can use to build more homes. The total grant pool is £1.9bn.
Hometrack also found huge variations in the average income tenants will need to afford a home under the new regime, from £44,500 in London to £16,000 in the north-east.
Average income required for affordable rent:
REGION INCOME
London £44,500
South-east £26,500
East £23,100
South-west £21,100
West midlands £18,000
East midlands £17,000
Yorks/Humber £16,800
North-west £16,800
North-east £16,000
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Comments
What does the average lettings administrator and property manager earn these days?? Lets hope they don't need to find rented accommodation - they could be excluded just based on the very industry they work in!!