Households outside London spend an average of just over half their income on renting…
Households renting in London are putting a significant percentage of their income towards rent compared to the rest of the country, according to new data from Landbay.
Annual rental growth in the UK, excluding London, rose to 1.21% in March, bringing the average monthly rent to outside the capital.
In London, the average monthly cost of renting is more than double the national average, at 2100
However, the average disposable income for a worker in the capital is per 2455 month. As a result, 89% of their take-home pay is used on renting.
Outside the capital, rental payments amount to just over half (52%) of the average disposable income, which is per 1760 month.
In England, renters in the North East have the lowest percentage (41%) of their incomes going towards rent, followed by Yorkshire & the Humber (43%), the North West (44%) and the East Midlands (44%).
“Rents have continued to rise over the last five years, increasing by 9% across the UK since March 2013 and by 7% in London,” notes John Goodall, CEO and founder of Landbay.
“Not a day goes by when there isn’t more news about the supply-demand mismatch in the UK housing sector and until this is resolved, tenants will continue to rely on the private rented sector to support them.
“With the right property and the right location, there are attractive yields to be had, and consistent rental demand will drive returns in the long-term,” Goodall concludes.