The Average Rent For #1 Bed Property Reach £1k /Month
The average rent for a one bed property in the UK hit £1,010 in August.
That takes the total to over two thirds (67% ) of the average disposable income of £1,497, according to the latest Landbay Rental Index.
The Index shows signs that rental pressure is easing on tenants, as one bed rents grew by 0.1% last month, and 1.7% over the last year, behind wage growth of 2.4%.
In London, the proportion of monthly income spent on rent is significantly higher.
The average rent for a one bed was £1,461 in August, compared to an average disposable income of £1,967.
For someone living in a one bed property in the capital, that’s almost three quarters (74%) of take home pay going toward rent.
Outside of London, this proportion is significantly lower, with just 41% of post-tax income handed over to the landlord each month.
John Goodall, CEO and founder of Landbay said: “The buy to let market is a vital part of the UK’s housing mix, and rental properties have become an important stepping stone for first time buyers saving up for their own home.
“However, with a rapidly growing population and a chronic undersupply of new houses, property prices are growing even further out of reach for aspiring homeowners.
“With rents climbing too, even in the face of Brexit uncertainty, tenants saving up for a house face a triple challenge in trying to catch up with the pace of house price inflation, with more and more of their income spent on rent, and record low interest rates limiting their ability to save money.
“With a new Prime Minister, a new chancellor, and a new London Mayor, bold new steps should be taken to fix the UK’s housing crisis. It must be high on the agenda at the upcoming Autumn Statement, especially given that rising rents are partly due to stamp duty increases being passed on renters.
“Phillip Hammond’s fiscal plan should also give more support to savers struggling to find a rewarding home for their money in this protracted period of record low interest rates.”
Overall, rents across the UK grew by a modest 0.12% in August, taking annual growth to 1.83%, in a return to growth following a -0.02% fall in July. Rents grew across all regions bar London, where rents we broadly flat, dipping by -0.01%. The average UK rent regardless of property size is now £1,186, with London’s average being £1,892, and the rest of the UK being £745 per month