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Record rents dominate almost half of tenants’ income

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  • 19/10/2011
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Record rents dominate almost half of tenants’ income
Monthly private rental costs now account for almost half of the average British family’s take home pay, as rents hit record levels in September, FindaProperty.com has revealed.

Its research revealed the average monthly rent rose by 1.6% in September, taking the typical asking price for rent to £890 a month.

Rental asking prices have risen every month in 2011 so far and increased 4.6% in the past 12 months, adding £468 pounds to the average annual rental bill.

FindaProperty.com said that the increase means that a typical renting household can expect to spend 46.2% of their monthly net earnings on accommodation.

Londoners are hit worst. Despite earning on average 41% more than those in other areas, London households’ rents cancel out the benefits, with average rents accounting for 76.3% of average earnings a month.

FindaProperty.com revealed landlords in the capital charge on average £2,075 a month in rent, while the typical household brings in £2,721 in net monthly income.

By comparison, Yorkshire offers the best value for renters, with average rents at 35.3% of incomes.

Samantha Baden, property analyst at FindaProperty.com, said: “Rental prices are increasing at an alarming rate, with the increases being primarily driven by a bottleneck in the first-time buyer market.

“Accommodation at this price means that a place of your own is simply unfeasible for many people and there is a growing trend towards young professionals flat sharing for longer in an attempt to save a deposit to help them get onto the property ladder.”

FindaProperty.com said that landlords continue to be the main beneficiaries of the rental market.

Its research showed that rental properties spend 17% less time on the market than the historical average, suggesting that rental prices are likely to increase further.

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