Northern towns offer most affordable rental homes in 2020 – Paragon

by: Alexandra Watson
  • 27/04/2021
  • 0
Northern towns offer most affordable rental homes in 2020 – Paragon
Paragon’s index has revealed that Copeland, Allerdale and Barrow-in-Furness were the most affordable locations to rent in England in 2020.

 

The bank used recently published government data that calculates the average percentage of annual salary spent on rental payments to determine the affordability ratio.

Copeland topped the list as the most affordable place to rent in England, with just 14 per cent of annual salary being spent on rent. Furthermore, the North West was also shown to be the most affordable region to rent, followed by the North East and Yorkshire.

The least affordable locations to rent were all in London. Kensington & Chelsea headed the list, where the average rent was 98.1 per cent of the average resident’s salary, while Westminster was 91.3 per cent. Hackney came in at 63.3 per cent, while Hammersmith & Fulham and Camden were around 61 per cent.

According to property type, the average four-bed home amounted to 56.1 per cent of a tenant’s salary to rent, followed by a three-bed at 38.7 per cent, a two-bed at 31.3 per cent and a one-bed at 25.2 per cent.

Top 10 most affordable areas in England

Area 2020 income

£

Mean rental

£

Affordability ratio %
Copeland 43,463 6,101 14.0
Allerdale 33,335 5,948 17.8
Barrow-in-Furness 35,139 6,890 19.6
North East Lincolnshire 28,767 5,646 19.6
Carlisle 29,223 5,750 19.7
Bassetlaw 30,273 5,978 19.7
Wigan 29,872 5,910 19.9
East Riding 31,592 6,304 20.0
Fylde 36,089 7,308 20.2
Eden 30,707 6,370 20.7

 

Top 10 least affordable areas in England

Area

     2020 income £

Mean rental £

Affordability ratio%

Kensington & Chelsea 46,568 45,701 98.1
Westminster 43,726 39,936 91.3
Hackney 37,585 23,782 63.3
Hammersmith & Fulham 41,262 25,200 61.1
Camden 42,528 25,928 61.0
Islington 47,120 26,174 55.5
Barnet 34,999 18,900 54.0
Lambeth 42,000 22,174 52.8
Southwark 38,266 19,746 51.6
Tower Hamlets 41,939 21,594 51.5

 

Paragon’s managing director of mortgages, Richard Rowntree, (pictured) said: “These figures paint a revealing picture, with the most affordable rental locations mainly concentrated in northern areas.

“House prices are typically lower in these regions, meaning that rents tend to be lower.

“At the other end of the scale, it is not surprising to see London as home to the least affordable locations and that is why London has the highest proportion of house sharers in the UK.”

 

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