News
Rents in England taking up more income outside London
Thursday 12th January 2017
A typical house for rent outside London now costs tenants half of their disposable income, according to Landbay Rental Index. The average rental price is £749 and with the average income of £1,425 renters are feeling the pinch.
Those living in a one bed property spend 42% of their take-home income on rent. And there are significant differences across the regions with Scotland rents at £720, Wales at £633 and England at £1,220.
A statement released by John Goodall, chief executive and found of Landbay said "Outside the capital, rents continued to grow across the country in 2016, a trend we expect to continue into the coming year. Demand for rented accommodation will remain robust, as the myriad threats of rising house prices, falling real incomes and rising inflation affect the ability of aspiring home owners to get their foot on the housing ladder and save for a deposit."
"The government may have just committed £7bn to building an additional 200,000 affordable starter homes, but supply across all tenures is still too low. The buy-to-let market has become a 'catch-all' for a forgotten generation of house hunters, for those who cannot, or choose not to buy a property outright."
"All eyes will now be on the upcoming Housing White Paper, which may be the best opportunity we've had in recent years for significant change."