Rent is rising. Indeed, the cost of living in rented accommodation in England has increased from an average price of £344 in the year 2000 to £858 in 2019, a 150% increase in just shy of 20 years.
As it continues to rise, it continues to outstrip many of life’s day-to-day costs, like bread, eggs and fuel. However, according to new research from online letting agent, Howsy, there are still a few things that even rental growth is struggling to catch up to.
The cost of renting a property
In comparison, the cost of milk has risen by just 29% to 44p per pint over the same time period.
Similarly, eggs per dozen are 42% more expensive, fuel per litre has risen by 59% to £1.27, while McDonald’s Big Macs have risen by 63% to £3.09.
The average price of draught beer per pint has increased by 82% to £3.64.
Bread (per white loaf sliced) has seen a significant price increase of 104% to £1.06, though it’s still less of a hike than with the private rental sector.
Cigarettes and cars outstrip rental growth
While the cost of renting has risen significantly, it’s still been hiked by a lower percentage than cigarettes. A pack of 20 is now 162% more expensive than in 2000, costing £10.23, up from £3.91.
Buying a brand new car is now 163% more pricey, rising from £12,780 in 2000 in £33,559 in 2019.
Trumping all these costs is university tuition fees per year, which thanks to government measures are 825% more expensive than in 2000, rising from £1,000 to £9,250.
Calum Brannan, Founder and CEO of Howsy, commented: “It will come as little surprise that rents have risen at a faster rate than many of life’s other essential outgoing costs since the turn of the Millennium.
This is largely due to the ever-increasing levels of tenant demand within the sector and a stagnant level of homes to accommodate this demand, which has resulted in a substantial hike in the cost of renting.
As a result, people are now spending a greater proportion of their income on rent when compared to other essentials like food or fuel. If you rent, smoke, went to university and need a car, then you’re really up against it financially.”