Government accused of lying about average cost of rent
David Cameron and Grant Shapps have been accused of lying in the House of Commons, saying that rents in the UK have been falling when they have not. This accusation has been levelled by Labour’s shadow housing minister Jack Dromey who has urged the Prime Minister to correct the record as it is not true at all.
Surveys have shown that rents have been rising and continue to rise across the UK and figures for January show a marked rise - 4.3% year-on-year. Dromey claims that this is an example of the Government being out of touch with the people it governs, everyday people who pay rent each month.
It has been an observed pattern that rents are high and getting higher, whilst tenant demand for properties is also at a peak. Meanwhile, the prices of properties is falling each month with no sign of letting up, putting a strain on the property market. It is a good time for anyone looking to buy a home as with property prices low and banks starting to ease up on restrictions on lending again it is easier than ever to get a really good deal on mortgages.
It may also be the perfect time to look into a buy to let mortgage as rent can be set high enough to cover the monthly mortgage repayment and a little extra and with there being more tenants than properties, the property is almost guaranteed to be filled quickly.
It is not, however, such a good time for those who have to rent because of money worries or bad credit and the Prime Minister seems not to have his finger on the pulse when it comes to people with lower incomes and less access to loans and mortgages.
Jack Dromey has written a letter to David Cameron asking, for the second time, that he correct his mistake on record and acknowledge the financial struggles of many families across the country but as of yet has not received a response. He claims that he will be raising the issue in Parliament to make these people’s voices heard.
Whilst the Government have yet to respond to Dromey’s claims, if he continues to bring this to the country’s attention he is certain to get a response sooner rather than later.
Article by: Taj Kang, Associate Director at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager.
Tel: 0844 44 88 800
Email: media@contractormortgagesuk.com
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