New figures reveal the most expensive places to buy and rent property in Havering
PUBLISHED: 07:00 18 June 2018
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The cost for a family of renting a home in Havering has increased by 29per cent over the last four years and house prices have increased in the borough by 1.4pc in April.
According to TotallyMoney’s research of the UK’s best and worst buy-to-let yield postcodes, Rm4, Havering-Atte-Bower has some of the most expensive properties with an average asking price of £736,087, while RM13 in Rainham has the lowest average asking price of £364, 292.
The area of RM12, Hornchurch has the highest average rental prices of £1,476 while RM1, Romford has the lowest rental prices of £1,138.
Adults in their 20s and 30s have been nicknamed Generation Rent as soaring house prices have put buying properties out of reach.
Between April 2013 and March 2014 the median monthly rent for a three bedroom family house in Havering was £1,050, according to figures from the Valuation Office Agency.
However by 2017-18 that cost spiralled to £1,350. The average rise across England over that period was 15pc.
In Havering the overall median monthly rent was £1,100. That’s a rise of 27.6% since 2013-14, when the VOA first began publishing this data.
This is lower than average for London, which is £1,400.
The cost to rent a one bedroom property is now £875. That’s a 29.6pc rise on 2013-14.
The median is the middle figure out of a group of numbers, so not distorted by very high and very low rents. The figures are calculated after the Valuation Office Agency (VOA) has collected samples throughout the 12 month period and different years have different sample sizes so annual changes are estimates.
House prices are also on the rise in Havering, with property prices increasing by 1.4pc in April, contributing to a 5.5pc rise over the last 12 months.
The latest data from the Office of National Statistics shows that the average property in the borough sold for £373,914 - significantly higher than the UK average of £226,906.
The data comes from the House Price Index, which the ONS compiles using house sale information from the Land Registry, and the equivalent bodies in Scotland and Northern Ireland.
The average homeowner in Havering will have seen their property jump in value by around £151,000 in the last five years.
The figures also showed that buyers who made their first step onto the property ladder in Havering in April spent an average of £317,699 - around £128,000 more than it would have cost them five years ago.
Dan Wilson Craw, director of pressure group Generation Rent, said: “Renters are in a bind. If they choose to live where there’s a strong jobs market they might see their pay packet gobbled up by high rents.
“If they live somewhere cheaper, either there’s a risk that it’s harder to find a stable job or they pay for it in higher commuting costs.
“The government must make renting a more secure arrangement, with restrictions on rent rises and unfair evictions, but also look at how to introduce a living rent that ordinary workers can afford.”