Rents still rising across the majority of the UK

Rents across Britain continue to rise, according to the most recent rental Index from Landbay.

In fact, rents rose across the UK, with all regions excepting London and Northern Ireland seeing both month-on-month and year-on-year increases.

Rises

Nationally, rents rose by 0.82% year-on-year and by 0.04% month-on-month to reach an average of £1,191 during April.

A more detailed look at the figures shows that rents rose by 0.04% month-on-month in England, 0.09% in Scotland and by 0.1% in Wales. However, rents slipped by 0.09% in London and by 0.37% in Northern Ireland.

Should London be excluded from the analysis, then rents increased by 0.12% month-on-month in the rest of the UK.

Year-on-year, rents increased by 0.82% in England, by 1.21% in Scotland and by 1.3% in Wales. On the other hand, they fell by 0.81% in London and by 1.01% in Northern Ireland. If London is taken out, then rents rose by 1.72% across the rest of the country.

Rents still rising across the majority of the UK

Rents still rising across the majority of the UK

Take-Home Pay

What’s more, the index underlines the difficulty facing young people renting alone. These tenants, aged between 18-39, face rental costs averaging £1,012 per month-over one-third of the typical take-home pay for this age bracket.

Of course, this means that these renters have little money left to save for a deposit each month, with rents also found to have increased by 9% over the last five years.

In a shared property with two people, the average rent of £1,152 amounts to 39% of each tenants’ income.

Commitment

John Goodall, chief executive officer of Landbay, noted: ‘Whether tenants are renting as a stepping stone on the way to home ownership, or choosing to rent for life, this generation are relying on a well-served buy to let market to ensure rental growth doesn’t become unbearable.’[1]

‘What is now needed is some firm Government commitment to improving standards, affordability and supply of rental properties. Institutional investment and the subsequent growth and professionalisation of the private rental sector are already helping control rental growth and improve living standards for renters,’ Mr Goodall added.[1]

[1] http://www.propertywire.com/news/uk/residential-rents-creep-across-uk/

 

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