Proof, if proof was needed, earlier this week that property prices in the capital are out of control. Research by Savills estate agents found that house prices in the London commuter belt increase by more than £3,000 for every minute the property is closer to the city by train.
What’s that you say? £3,000? Per minute? In the North of England that would buy you six months rent in an attractive suburb of a major city. Add into the equation that the average house price in inner London is £606,000, and house prices across the country continue to climb – the UK average is more than £212,000. No wonder then that we’re becoming a nation of renters.
Citizens Advice says that more than a million families are raising children in a privately-rented home, treble the number a decade ago. Overall, private rents are rising faster than pay, according to figures from the Office for National Statistics. Last week it said that private rents grew by 2.8 per cent on average in the year to February 2016. But average weekly earnings in Britain are increasing by only 2.2 per cent.
To add to the misery, new research from comparison site comparethemarket.com suggests that renters are losing more than £330 million in stolen goods each year due to a lack of contents insurance. The issue particularly affects 16 to 34 year olds or ‘Generation Rent’ which has over £170 million stolen each year due to home burglaries and an inability to claim back thanks to a lack of contents insurance. These are the people who are being frozen out of the home ownership market.
Damian Reilly, head of home insurance at comparethemarket.com, said: ‘This research shows an extremely worrying lack of insurance among renters in the UK, particularly among young people. The fact that over £330 million is lost to domestic burglary and is not covered is regrettable and unnecessary, as the cost of contents insurance policies is comparatively low. The figures show the financially devastating effect that a break-in can have on a household without insurance with the average domestic burglary costing £2,833, not even factoring in the psychological trauma.
‘It makes sense that renters take out a policy to ensure that they are protected. Unfortunately, the statistics indicate that those who suffer are often those who can least afford to be and are least prepared.’
It’s not just the young who fall victim to thieves, only to discover the cost of replacing uninsured items. According to comparethemarket.com, more than 115,000 uninsured rented households are the victim of domestic burglary each year – and nearly half of all renters do not have contents insurance. That’s more than 4 million of the 8.3 million rented households in the UK.
So, if you’re living in one of these uninsured homes, take a look around. Could you afford to replace your tablet, your TV and your phone if burglars come calling?
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