How capital’s hard-pressed renters can cut their costs

Big businesses could now be called on to alleviate the pressure on private rental prices in the capital and across the UK by investing in build-to-let property, following the latest government report. But the effects won’t be felt on the ground for some time and with Londoners facing an average rent of £1,260 a month – a massive 85% more than the rest of the UK, according to the HomeLet Rental Index – keeping a lid on costs has become vital.

Being flexible with location and sharing with friends are obvious options, but less than a third of private renters realise they are perfectly within their rights to switch energy suppliers, subject to their contract. A fixed-term deal that doesn’t carry exit penalties could save significant cash in light of the latest price hikes, suggests uSwitch.com, such as ScottishPower’s Online Energy Fixed at £1,052 a year until November 2013 or EDF Energy Blue+ Price Promise at £1,058 a year until April 2014.

Renters are also being urged to remember their rights under tenancy deposit schemes that guarantee the return of a rental deposit and protect tenants from unscrupulous landlords. The deposit for any assured shorthold tenancy which began on or after 6 April 2007 must be placed into an approved scheme. More details are available from www.direct.gov.uk.

But more unusual solutions like live-in guardianship schemes are gaining popularity as mainstream prices soar. Managed by the likes of Camelot Europe, Live-in Guardians and social enterprise scheme Dot Dot Dot Property, carefully vetted caretakers pay a nominal rent to live in anything from factories to schools for a short period, usually a few months. Basic requirements such as electricity and running water are always provided and you could find yourself living in the middle of the city with a vast amount of space for a steal.