Monthly rents rise by £221 over three years, analysis suggests

5 hours ago Share Save Kevin Peachey Cost of living correspondent Share Save

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The monthly cost of renting a home has risen by £221 in three years, according to property portal Zoopla. The BBC has heard how the pressure has led to some tenants making decisions about jobs based on rent in the area, and parents who are helping their grown-up children with living costs. The increase is very similar to the typical rise in monthly mortgage repayments for homeowners. However, Zoopla says the rate of rent increases has slowed, particularly in cities.

Neysa Killeen says it is hard to cover the rent

The cost of renting has risen sharply in recent years due to high demand from tenants. At the same time, the number of properties available to rent has either fallen or failed to keep pace with demand. Analysis by Zoopla, shared with the BBC, suggests that rents for new tenancies are 21%, or typically £221 a month, more expensive than three years ago. The average monthly rent this spring was £1,283, the figures show.

Some renters are having to move or turn down jobs owing to high rents. Neysa Killeen now works in musical theatre after studying in Dublin. She had wanted to accept a job in a school in the city but said the wage did not cover the rent. "That was the first time I had to turn down a good opportunity," she said. After moving to the north of England, she has faced similar pressures. "I've been able to do fringe shows but now I'm looking at having to move to somewhere else because realistically I won't be able to keep up with the rent, and that's the second time this will have happened to me and I'm 26," she said. One mum, called Karen, contacted us through Your Voice, Your BBC News to explain how her son - a father himself - needed financial help from her and her husband. Her son is a graduate with a good job, but needed their help because rent was so high. However, she said her own plans to retire meant it was not a sustainable solution. Lucian Cook, head of residential research at estate agency Savills, said more parents were acting as guarantors when tenancies were agreed. He said the period of high rental growth meant it was inevitable that parents were helping to pay the rent on an informal basis too. Aneisha Beveridge, from Hamptons, said that many young people had been leaving the family home much later in life in recent years because of rent rises.

More encouraging news for renters is that Zoopla data shows that rent rises have slowed, or even reversed in some areas – particularly in cities. Annual growth in average rents for new tenancies in the UK has slowed from 6.4% last year, to 2.8% in the year to April, according to Zoopla's latest report. Rents have fallen compared with a year earlier in Leeds, Dundee and parts of London. However, they continue to rise quite sharply in more affordable areas adjacent to large cities. Wigan, Carlisle, Motherwell, Chester and Blackburn have all seen annual rent rises of 8% or more.

Renters might not be able to buy

Over the last three years, homeowners were faced with much higher mortgage rates, and typically saw their monthly repayments on a new fixed deal rise by £218 compared with three years earlier. Although the increase for renters and homeowners is very similar, Zoopla's executive director of research Richard Donnell said that property owners tended to have bigger homes. They were more likely to have a two to four-bedroom home, while renters were often younger and living in a one to three-bedroom home. Mortgage holders were also likely to be reducing their debt with each payment.

While rents and mortgage repayments were rising sharply, Zoopla said house prices were relatively steady. They rose by 4% over the same three-year period. Normally that would be a boost to first-time buyers, keen to see house prices stagnate rather than get even more out of reach. However, rising rent and deposit demands mean the financial pressure can still be difficult to manage, even before a mortgage needs to be paid. "I don't know anyone who expects to be able to buy a house, it's just not something we talk about," said Neysa.

Stefania Calhoun says prices are high

The government has announced a permanent extension to the mortgage guarantee scheme, which should ensure low-deposit mortgages remain available to first-time buyers. The City regulator, the Financial Conduct Authority, has confirmed plans for simpler rules around mortgages. There is also a plan to allow people to show evidence of rent payments as part of lenders' affordability checks. That would be welcomed by another stretched renter, Stefania Calhoun. "I'm not look for an extravagant house, I'm not looking to live above my means, I just want a cosy house and to invest in something that's mine and leave a legacy for the kids," the 41-year-old said.

Lifelong renting

However, renters may not have any intention to buy, and Mr Donnell said they also needed support. "Home ownership remains out of reach for a large proportion of households on lower to middle incomes with small deposits," he said. "This is a large and important group of private renters, who still face strong competition for rented property. Those on lower incomes tend to be limited in their ability to move home, which risks triggering higher rental costs. "Policymakers need to prioritise measures to grow the supply of affordable rented homes to boost choice for lower income renters."

'It's a lifesaver': Making solar power affordable in South Africa

7 hours ago Share Save Pumza Fihlani BBC News, Johannesburg Share Save

Pumza Fihlani / BBC Mark Moodley (L) says that the lack of a consistent power supply endangered his mother's life

South African Mark Moodley believes that installing a domestic solar power system has helped keep his 81-year-old mother alive. She spent three weeks in intensive care last year, and now back at home in Benoni, east of Johannesburg, she needs an oxygen concentrator to help her breathe. But the country's erratic electricity supply meant could not be relied on. "There were days we'd be without power for six hours. I had to use a car battery to run her oxygen tank, but that didn't last long and you'd have to sit with her with her arms raised to try and get oxygen into her lungs," Mr Moodley tells the BBC. "Sometimes we had to rush her to hospital when that didn't work. It was scary." Back then, doctors told the family she might not have long to live. But a steady power supply has given them more time together. "It's been a lifesaver. I don't have to check on her constantly through the night. I know her oxygen tank has power no matter what," he says, voice trembling. Despite recent improvements in South Africa's power grid, there are still outages. Having a steady electricity supply has become a privilege in the country, which has endured nearly 15 years of "load-shedding" - scheduled nationwide blackouts introduced to ease pressure on the fragile infrastructure. As well as endangering some lives, the crisis has damaged economic growth and contributed to job losses. South Africa is heavily reliant on highly polluting coal for its power - it accounts for around 80% of all electricity generated. But in recent years it has loosened restrictions on small-scale solar generation and created tax incentives for installation. The country is also looking for more investment in renewable energy in order to aid the switch from coal. Domestically, those with financial means have gradually taken their homes and businesses off-grid, investing in solar power systems that require an initial outlay of $14,000- $19,600 (£10,400-£14,500).

Pumza Fihlani / BBC Mr Moodley is hoping to go completely off-grid

That price tag means that this option is far out of the reach of most South Africans. Those scraping by cannot take advantage of the country's sunshine and invest in clean, reliable energy. But Mr Moodley was able to turn to a pay-as-you-go scheme that has kept the lights on and the medical equipment working. His electricity bill has dropped by $80 a week - savings he hopes to use to expand what he has and eventually go completely off-grid. The system he uses comes from Wetility, a local start-up founded in 2019 For domestic users, the most basic package costs $60 a month - and crucially no prohibitive up-front payment - making solar power more accessible. The company says it identified a gap in the market - affordable solar solutions tailored to small businesses and low-income households. "South Africa has traditionally had high electricity access - but access means nothing if the power isn't reliable or affordable," says Vincent Maposa, the company's founder and a former energy analyst. "We had to develop products that are both fit-for-purpose and financially accessible." While solar power is not new in South Africa, Wetility's business model includes a mobile-phone style monthly payment plan, allowing customers to spread out the cost.

Pumza Fihlani / BBC The boxes containing the inverter and battery that are installed in homes and businesses are put together at a factory in Johannesburg

For years, load-shedding has been used as a last-ditch attempt to keep the national grid from total collapse, following decades of mismanagement at state utility Eskom. While blackouts have eased for some urban centres, poorer communities and business people continue to suffer forced cuts as aging infrastructure struggles to meet the growing demand. For some in the townships worries about theft and practicality have also deterred people from getting solar equipment, but Wetility has also designed lightweight, flexible panels that can be fitted on the fragile rooftops common in many of these areas. "We came up with a thin-film panel that sticks onto the roof. If someone tries to peel it off, it tears and becomes valueless. That was important for areas where theft is a concern," says Mr Maposa. "In terms of efficiency, they perform about as well as traditional panels." The energy unit, including an inverter, which converts the power generated by the panels into useable electricity, and a battery that works when the sun is not shining, is secured in a large steel box weighing about 300kg that bolts onto a wall. The team says this reduces the risk of theft and avoids drawing attention in high-crime areas.

Pumza Fihlani / BBC Julius Koobetseng's business was under threat because of the power cuts

Shopkeeper Julius Koobetseng recently made the switch to solar that may have saved his small grocery store. In a grey beanie hat and thick blue jacket to ward off the cold in the southern Hemisphere winter, he stacks cans of drink in a brightly lit fridge remembering how the frequent power cuts nearly wrecked his livelihood. "Meat would go off, dairy would spoil. Sometimes we'd be without power for four days," the 43-year-old says. But since March, his shop in Krugersdorp, west of Johannesburg, has been using the pay-as-you-go solar power system to keep the lights and fridges on. Some small business owners have turned to back-up diesel generators but Mr Koobetseng, who has had his shop for the past 13 years, was drawn to the more environmentally friendly option. "Power cuts have badly affected small businesses. I know many in this area that had to shut down because they couldn't keep up with the uncertainty," he says. "We live month-to-month, depending on what the business brings in. If you can't guarantee power, how do you even plan for the future?" Now he does not worry when the power goes out which has been "a huge relief". It costs his business $250 a month but Mr Koobetseng's business has picked up thanks to the reliable power. "People know my shop stays open even when the power's out. Some just come to charge their appliances, but while they're here, they buy things too," he says with a smile. For him, the benefit is not about lowering his electricity bills. It is the consistency. "Solar gave me back control. I can plan my day knowing I'll have power."

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WHO condemns Israeli raid on central Gaza residence and warehouse attack

14 minutes ago Share Save David Gritten BBC News Reporting from Jerusalem Share Save

Anadolu via Getty Images Smoke rises over western Deir al-Balah during an Israeli offensive on Monday

The World Health Organization (WHO) says Israel's ground offensive in central Gaza has compromised its efforts to continue working, after its facilities came under attack. The UN agency accused Israeli forces of attacking a building housing its staff and their families in the city of Deir al-Balah on Monday and mistreating those sheltering there. Its main warehouse was also attacked and destroyed. The Israeli military has not yet commented. Its first major ground operation in Deir al-Balah since the start of the war with Hamas 21 months ago has displaced tens of thousands of Palestinian civilians, amid warnings of a severe hunger crisis across the territory.

The UN said on Monday it was receiving reports of malnourished people arriving at clinics and hospitals in extremely poor health, while the Hamas-run health ministry said 19 people had died from malnutrition since Saturday.

On Sunday, the Israeli military ordered the immediate evacuation of six city blocks in southern Deir al-Balah, warning that it would be operating "with great force to destroy the enemy's capabilities and terrorist infrastructure". The estimated 50,000 to 80,000 people living in the affected areas were instructed to head south towards the al-Mawasi area in the south of the territory. The UN's humanitarian office said UN staff would remain in Deir al-Balah despite the evacuation order, spread across dozens of premises whose co-ordinates had been shared with Israel, and stressed that they had to be protected. On Monday night, the WHO put out a statement saying it condemned "in the strongest terms" attacks on its facilities. It said the WHO staff residence was attacked three times, and that staff and their families, including children, were "exposed to grave danger and traumatized after air strikes caused a fire and significant damage". "Israeli military entered the premises, forcing women and children to evacuate on foot toward al-Mawasi amid active conflict. Male staff and family members were handcuffed, stripped, interrogated on the spot, and screened at gunpoint," it added. "Two WHO staff and two family members were detained. Three were later released, while one staff member remains in detention." The WHO demanded the immediate release of its detained staff member and the protection of its other staff, who have been relocated with their families to its office in Deir al-Balah.

Government now main shareholder in £38bn Sizewell C

1 hour ago Share Save Mariam Issimdar BBC News, Suffolk Share Save

Sizewell C The government has said it will invest £14.2bn into the Sizewell C nuclear power plant

The government has announced it will become the main shareholder in the new Sizewell C nuclear plant. It has confirmed taxpayers will take a 44.9% stake in the project which will also be funded by four other companies; EDF, Centrica, La Caisse and Amber Infrastructure. Downing Street had already committed £14.2bn of investment to build the new Sizewell C nuclear plant on the Suffolk coastline, ahead of the Spending Review. The cost of the project, revealed on Tuesday, is now £38bn - the last official figure was for £20bn.

Alison Downes, director of pressure group Stop Sizewell C, said: "This much-delayed final investment decision has only crawled over the line thanks to guarantees that the public purse, not private investors, will carry the can for the inevitable cost overruns." Ms Downs added she expected UK households to be hit with a new Sizewell C construction tax on their energy bills. "It is astounding that it is only now, as contracts are being "signed, that the government has confessed that Sizewell C's cost has almost doubled to an eye watering £38 billion - a figure that will only go up," she said. Sizewell C is expected to create 10,000 direct jobs, thousands more in firms supplying the plant and generate enough energy to power six million homes, the Treasury said. Energy Secretary Ed Miliband said: "It is time to do big things and build big projects in this country again and today we announce an investment that will provide clean, homegrown power to millions of homes for generations to come. "This government is making the investment needed to deliver a new golden age of nuclear, so we can end delays and free us from the ravages of the global fossil fuel markets to bring bills down for good."

Martin Giles/BBC Alison Downes of Stop Sizewell C said taxpayers would "carry the can"

The government's National Wealth Fund - its principal investor and policy bank - will be making its first investment in nuclear energy. Ownership of the plant will see La Caisse take a 20% stake, Centrica will have 15% and Amber Infrastructure an initial 7.6%. This comes alongside French energy giant EDF taking a 12.5 % stake in the project, set out earlier this month, as well as a proposed £5bn debt guarantee from France's export credit agency, Bpifrance Assurance Export, to back the company's commercial bank loans. Julia Pyke, joint managing director of Sizewell C, said: "By investing in Sizewell C, they [the government] are laying the foundations for a more secure, cleaner and more affordable energy system. "Because 70% of our construction spend will be in the UK, with a £4.4bn commitment to the east of England, they will also help to create thousands of great jobs and new opportunities for people and businesses up and down the country."

Jamie Niblock/BBC Large areas of land have already been cleared in preparation for the building of Sizewell C

Despite the UK's strong nuclear legacy, including opening the world's first commercial nuclear power station in the 1950s, no new nuclear plant has opened in the UK since 1995, with all of the existing fleet except Sizewell B likely to be phased out by the early 2030s. Sizewell C was one of eight sites identified in 2009 by then-Energy Secretary Ed Miliband as a potential site for new nuclear. However, the project was not fully funded in the 14 years that followed under subsequent governments.

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In the context of teams focusing on 2026 cars, it is interesting that so many have introduced new floors over the past few races. Are floors more reusable for the new regulations than other parts, or do they simply provide the best value for money performance upgrade? - Sam

The fact that teams are introducing new floors as upgrades this year is not in any way related to next year's new rules.

On the current F1 cars, the floor is the most powerful part of the design in terms of aerodynamics, so it's inevitable that will be where teams focus their attention as they try to make their cars faster through the season.

But any floor that is introduced this year is not relevant to next year because the technical regulations for 2026 are completely different in aerodynamic philosophy.

The so-called venturi floors that generate ground effect on the cars that have been in F1 since 2022 are being abandoned next year.

Instead, F1 is returning to what are known as 'step-plane' floors - similar to the ones used prior to 2022.

These have a central section which is the lowest part of the floor, and then a 'step' either side to a higher section which, from the front of the floor to ahead of the rear tyres, is flat, rather than curved in a wing shape as now.

However, the cars will have to be run differently from that era because the FIA has introduced a series of prescriptions with regard to what teams can do to control airflow in the rear corners of the cars.

According to Mercedes technical director James Allison, these restrictions in the rules "make it harder to hang on to the downforce at high ride heights".

In the era from 2017-21, there was a lot of discussion about the cars' rake.

Red Bull ran a high rake - a steeper angle from front to back - and Mercedes low. In other words, the Red Bull's rear was higher from the ground than the Mercedes'. Red Bull's was the style followed by most teams at the time, even though this was the era of ground-breaking Mercedes success.

These approaches were to do with different philosophies of dealing with a phenomenon known as 'tyre squirt'.

This is messy airflow created where the inner shoulder of the rear tyres meets the ground. It disturbs the clean flow of air teams want through the diffuser, the upswept part of the floor at the back of the car.

Teams want to try to clean up that airflow to increase downforce created by the diffuser, and under the previous rules there were various ways of doing that. But the new rules have aspects that are intended to impede that possibility.

According to Allison, this will likely mean that the cars next year typically run lower at the rear than in the previous generation - but not as low as the ground-effect cars of the current era.

Allison said: "The low ride-height Mercedes (of the previous era) is vastly higher than the cars of the current generation, and I suspect that the new generation cars will be in between where we are now and the lower end of the ranks that we saw in the 2014 to 2021 era."