Renting in the private sector in Brighton and Hove can cost up to two thirds of a couple’s monthly income, according to a think-tank’s analysis.
The report highlights the financial struggle for low to middle income families and points out that the rising cost of deposits has put mortgages out of reach for many.
It also flags up the shortage of social housing such as council homes and those let by housing associations.
The Resolution Foundation said: “Even a very modest rented home is beyond the reach of low income households in 33 per cent of all local authority areas.”
The think-tank analysed the cost of living in every local authority area for a couple earning an average income of £22,000 a year.
Its analysis suggested that a couple without children in a typical one-bedroom property owned by a private landlord would need to spend 36 per cent to 54 per cent of their income on rent.
They would need to spend between 39 per cent and 58 per cent of their income on a mortgage.
A couple with one child in a two-bedroom property would need to spend 39 per cent to 58 per cent of their income on rent and 44 per cent to 66 per cent on a mortgage.
A couple with two children in a three-bedroom property would need to spend 44 per cent to 66 per cent of their income on rent and 49 per cent to 72 per cent on a mortgage.
Off-limits
The think-tank said: “One third of Britain is effectively off-limits to lower-income working families looking to rent a home privately because they can no longer afford a property in those parts of the country.
The study, Home Truths, also suggested that the demand for private rentals, coupled with low interest rates, meant that rents were now more expensive than monthly mortgage repayments in almost half of the country.
It said: “Private renting is increasingly the only option for millions of families who are not wealthy enough to afford a buyer’s deposit nor vulnerable enough to qualify for social housing.
“Most low to middle income households under the age of 35 (52 per cent) are now private renters.”
The report also said: “Moving to areas where housing is very affordable may not be sensible for many low to middle income families whose finances are squeezed by high housing costs because there may not be adequate employment and other opportunities in these inexpensive areas.
“Similarly, it highlights the importance for local authorities to consider the relationship between housing and other economic factors when planning where to locate new housing supply.”
In its conclusion the Resolution Foundation said: “The analysis presented in this report highlights the need for urgent action to address the affordability of housing for low to middle income Britain.
