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UK rental costs highest in Europe


Rental costs in the UK are the highest throughout Europe, according to figures from the National Housing Federation (NHF).

Tenants in the UK spend on average 39.1% of their income on rent compared to the European average of 28%. Renters in the UK are also less secure in their homes as they only have short tenancies available, according to the NHF, who represent housing associations.

Private rents in Holland and Germany are about 50% cheaper than the UK, and there is also a culture of long-term residency in European countries, unlike in the UK where people moved more often owing to short tenancy agreements.

Homeowners however, have been benefitting from competition between lenders. The British Bankers Association (BBA) has claimed that the fierce competition in the mortgage market has lead to “great mortgage deals” for people who have a deposit and in areas that houses are available.

Mortgage providers have been lowering the costs of home loans to try and tempt owners into purchasing their products, thanks to the combination of low interest rates, long term tracker deals loyalty and the lack of properties on the market leading to a drop in sales.

David Orr, chief executive of the NHF, said:
"How can we expect people to raise families, start businesses or save for their first home if they don't even know where they will be able to afford to live?
"High rents are just one symptom of the housing crisis, we are simply not building enough due to under investment and problems with the land market."

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