Generation Rent & Rent Poverty in Wales
This morning, the BBC published an interactive map showing the scale of the problem facing young people who are renting. The map demonstrates how much of their salary they would need to commit to renting a home.
The BBC’s article: Where does rent hit young people the hardest in Britain? focuses on London and the sky-high rents people would need to pay to be able to rent a 1 bed flat.
The data shows the average rent for a postcode area and what % of your salary you would need to pay in order to rent that 1 bed home
Since the article is England-centric, TPAS Cymru has reviewed the 100+ postcode areas in Wales finding that:
1. The highest % in Wales is CF10 (Cardiff Centre and the Bay) where a 22-29 year old would need to commit a whopping 44% of their average £23,500 salary to rent a 1-bed property. If you don’t earn that salary then the % will naturally rise.
2. Other areas where people in their 20s would have to stump up large parts of their salaries are not surprising; Cardiff and the easterly end of Vale of Glamorgan are also at 40%+.
3. However, it's interesting that parts of Ceredigion also expect you to part with over a third of your salary; although this is an area where there is a limited supply of housing due to holiday homes and short letting driving rental prices up.
4. The smallest % of a young person's salary was LD1 (Llandrindod Wells) at 21% of their salary. This sounds better but assumes you can get steady, well-paid work in that area. The same applies to areas like LL38 (Friog and Fairbourne, S. Gwynedd), NP13 Torfaen, and LP2 Builth Wells all with 23%.
This challenge really impacts young people. Decent, steady jobs are hard to find and if you do secure one you will need to commit a sizable % of your salary just to rent a property. When you add in Council Tax, utilities, commute etc, it's easy to see how so many young people end up in poverty.
This can’t be good for future generations and it is why we need to look hard at the future supply of housing in Wales based on need, not profit.
Director, TPAS Cymru
Reference 1: The BBC article https://www.bbc.co.uk/news/business-45559456