The Week Unzipped: Property rental costs hit two-year high as potential homeowners opt out

THE cost of renting in the UK is at a two-year high as the pressures of the economy lead to a squeeze on lettings, according to research from LSL Property Services.

The survey revealed that average rents have risen for seven consecutive months, increasing by 1.4 per cent in August as a result of potential homeowners increasingly opting to rent, rather than buy and a decrease in the number of rental properties available.

Reluctant landlords who decided not to sell when house prices were in a slump last year are now putting their properties on the market.

A separate survey for the Council of Mortgage Lenders found that long-term desire for home-ownership is stronger than ever with 85 per cent of Brits hoping to own their own home in 10 years' time. However, recent research by spareroom.co.uk found a third of those currently renting did not believe they would ever be able to afford to buy.

Elsewhere, a coalition of charities and consumer groups has written to the government demanding a law to protect vulnerable tenants from cold, poorly insulated rental homes.

The organisations, including Friends of the Earth, Age UK, Citizen's Advice Crisis and Disability Alliance, sent a joint statement to Energy Secretary Chris Huhne calling for action to make it illegal to rent out private properties until they are brought up to an acceptable standard of energy efficiency.

Almost a fifth of private tenants live in fuel poverty and cannot afford to heat their homes to a reasonable degree. Utility bills have increased by 125 per cent over the past six years, the Government's Fuel Poverty Advisory Group says.

Friends of the Earth's climate campaigner Dave Timms said: "The Government should introduce a minimum energy efficiency standard for private rented homes so they are better insulated and cheaper to heat - this would protect tenants from high fuel bills and ill health, while creating jobs, saving the NHS money and cutting carbon emissions."

Pocket money slides

Pocket money has fallen to a seven-year low, according to research from the Halifax. The average child today receives 5.89 a week, compared to 6.24 in 2009. The last time pocket money fell below 6 was in 2003 when parents typically gave their offspring 5.79 per week. Pocket money levels peaked in 2005 when lucky kids received 8.37 on average.

Despite the fall, there is good news for girls as the gender gap closed considerably this year. Boys still receive almost 40 pence more than girls but this is down from a difference of more than 1 per week in 2009. Almost half of children think they get the right amount of pocket money while two-fifths believe they should get more. The fall has affected youngsters' saving habits with just a quarter of children setting aside at least half their pocket money compared to almost half of kids last year.All change at Axa UK

Policyholders with Axa UK Life are to be transferred to Resolution after a 2.75bn deal was completed last week. It will see Resolution integrate some 2,200 employees in Axa's life businesses with Friends Provident - including AXA's Paul McMahon who will head up corporate pensions.