Which Regions See Tenants Spending the Highest Amount of their Salary on Rent?

Salary on Rent?

Which Regions See Tenants Spending the Highest Amount of their Salary on Rent?

With recent talk around the increase in Living Wage still not being enough to combat rising rents in London, we were interested to read the data in the latest Landbay Rental Index.

This information shows that, overall, tenants in the UK spend a third of their monthly salary on rent (before tax). This 33% average is excluding data from London. However, when we look at individual regions, there are obvious differences.

Despite matters looking tight for tenants in London, elsewhere it seems that the growth in wage is beginning to surpass that of rent prices in regions across the UK.

John Goodall, CEO and founder of Landbay has commented: “Improved affordability is welcome news for renters. For tenants looking to save up for a house, the prospect of having more money in their pocket each month will help them get one step closer to owning their own home. Wage growth is continuing to improve across the UK so the outlook for tenants can only get better.”

Average rental growth in the UK has risen by 1.25%, which equals a monetary increase of £120 or more per year. Looking at pay increases, we have seen an improvement to monthly gross salary by £768 per year. So, the current financial situation for tenants is looking good.

However, as we previously mentioned, these figures vary from region to region. Tenants in London are spending up to 61% of their gross salary on rent, if you look at the cost of an average rental property in that area. If we look down to the South East, on average tenants are spending 42% of their gross salary. For those in the East, it’s 38%.

Those living further up the country are the ones in the better situation. The index has reported that 25% of a tenant’s salary is going towards rent in the North East, 26% in Yorkshire and Humberside, and 27% in the North West.

 

Landbay Rental Index, powered by MIAC: Countries (All Beds)
Oct-18 Year on Year Month on Month Av. £
UK 1.03% 0.08%  1,212
UK exc. London 1.25% 0.09%  769
England 0.99% 0.07%  1,243
England exc. London 1.20% 0.08%  774
Scotland 1.54% 0.14%  742
Wales 1.71% 0.14%  655
Northern Ireland 1.01% -0.13% 574

 

Landbay Rental Index, powered by MIAC: Regions (All Beds)
Oct-18 Year on Year Month on Month Av. £
East England 1.23% 0.06%  918
East Midlands 2.33% 0.18%  637
London 0.63% 0.06%  1,898
North East 0.04% 0.03%  553
North West 1.04% 0.09%  625
South East 0.90% 0.04%  1,061
South West 1.33% 0.08%  755
West Midlands 1.45% 0.08%  693
Yorkshire & Humberside 1.47% 0.12%  584

 

Landbay Rental Index, powered by MIAC: Countries by number of beds
Oct-18 One bed Two beds Three beds
Year on Year Month on Month Av. £ Year on Year Month on Month Av. £ Year on Year Month on Month Av. £
UK 1.13% 0.11%  1,030 1.17% 0.10%  1,174 1.05% 0.05%  1,347
UK exc. London 1.33% 0.09%  607 1.35% 0.10%  725 1.28% 0.07%  837
England 1.10% 0.11%  1,064 1.11% 0.09%  1,209 1.04% 0.05%  1,368
Eng. Exc. London 1.31% 0.08%  615 1.28% 0.08%  728 1.29% 0.08%  833
Scotland 1.37% 0.20%  559 1.91% 0.22%  708 0.71% -0.08%  1,136
Wales 1.57% 0.09%  555 1.79% 0.18%  671 1.64% 0.11%  628
Northern Ireland 0.93% 0.13% 446 1.05% -0.04% 555 1.42% 0.05% 590

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