Rents are creeping up across the UK with all areas apart from London and Northern Ireland seeing them rise both month on month and year on year, the latest index data shows.
Nationally rents were up by 0.82% year on year and 0.04% month on month to an average of £1,191 in April, according to the index from Landbay.
A breakdown of the figures show that rents increased month on month by 0.04% in England, by 0.09% in Scotland and by 0.1% in Wales, but fell by 0.09% in London and by 0.37% in Northern Ireland. If London is excluded then rents increased by 0.12% month on month across the rest of the UK.
Year on year rents were up by 0.82% in England, by 1.21% in Scotland and by 1.3% in Wales but fell by 0.81% in London and by 1.01% in Northern Ireland. If London is excluded then rents increased by 1.72% across the rest of the country.
The index report also shows that younger people who live alone in a rented home in the UK spend upwards of a third of their monthly take home pay on rent. Those aged 18 to 39 face rental costs of an average of £1,012 a month and need 69% of their monthly income after tax to face that cost if they don’t share.
This means they have little money left over each month to save for a deposit if they aspire to buy their own home, the report points out, as rents have increased by 9% over the last five years.
In a shared house of two people, overall rent of £1,152 adds up to 39% of each tenant’s income, while those living in a three bed property would each spend 30% of their monthly take home pay on a rent of £1,322.
The data also shows that while rents have begun to fall in the prime central London market, outer boroughs such as Barking and Dagenham, Havering and Bexley have seen rents grow by 26%, 18.9% and 18.2% respectively.
‘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,’ said John Goodall, chief executive officer of Landbay.
‘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,’ he added.