Average monthly rent tops £1k
The average rent for a one-bed property reached £1,010 in August, according to data from Landbay.
In its latest Rental Index, the peer-to-peer lending platform also revealed that people renting one-bed properties spend more than two thirds of their disposable income on rent.
The average UK monthly disposable income was £1,497.
In London, the proportion of monthly income spent on rent is significantly higher. The average rent for a one bed property 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.
John Goodall, chief executive 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.”
Overall, rents across the UK grew by a modest 0.12% in August, taking annual growth to 1.83%, following a -0.02% fall in July.
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.