Tenants spending half their wages on rent
Rent accounts for a half of income for a third of UK tenants, with the average UK rent now reaching £745.97 per month.
New figures from Rightmove suggest that the average tenant spends 38 per cent of their wages on rent and this figure increases to 40 per cent in the South East and London.
One in six renters in London, and one in five in the south east, spend more than 60 per cent of their net income on rent.
With the shortage of rental properties still growing, most of the 7,000 tenants surveyed by Rightmove said they expected rents to go up in the next 12 months.
The survey suggests that rents are on the brink of becoming unaffordable for many.
Miles Shipside, director of Rightmove, said: “While the failure of rental supply to keep pace with tenant demand persists, fuelled by the needs of tenants unable or unwilling to buy, our research raises some interesting questions about how high the affordability ceiling is and how close we might be to it”.
On the positive side, the National Landlord Association’s Quarterly Tenant Index suggests that more than three quarters of tenants are satisfied with their current landlord.
Nearly half (46 per cent) of the tenants surveyed by the Association had been in their current rental property for four years or more, indicating a high level of satisfaction.
Although 71 per cent of tenants said they were renting because buying a property was unaffordable, 9 per cent said they preferred to rent because it gave them more flexibility.
A further 9 per cent said they preferred renting because it allowed them to live in a property that would be out of their reach as buyers.
David Salusbury, Chairman of the National Landlords Association says: “Tenants have high expectations of their rental experience and so I’m delighted to report that the majority are satisfied with their landlords.
“There are many landlords who take great professional strides to ensure they are doing the best by their tenants – it’s good to see their efforts come to fruition.