Recent research conducted by LandlordBuyer suggests that over the past 12 months, average salaries have seen a more significant increase compared to average private rental costs.
What Does the Latest Rental Price and Average Salary Data Indicate?
- Over the past year, average rent prices in England have increased by 5.12%. However, weekly regular pay has shown a greater increase of 7.17% over the same period (rising from £572 to £613).
- Excluding London, the average private rental price in the UK stands at £1,037 per month.
- London experienced its highest-ever annual rental price percentage increase in the last 12 months, with a 5.5% rise from August 2022 to August 2023.
- In the second quarter of 2023 (April to June), annual growth in regular pay (excluding bonuses) reached 7.8%, marking the highest regular annual growth rate since comparable records began in 2001.
Where Can You Find the Most Affordable Rental Regions in the Country?
The North East of England ranks as the most affordable region, with monthly rental prices averaging just £636. This is closely followed by Yorkshire and The Humber, where the average rent costs £836 per month.
What Do Property Experts Predict for the Future of Rental Costs in Relation to Salaries?
Jason Harris-Cohen, Managing Director of LandlordBuyer, offers his insights: “The UK’s rental market is subject to a ‘robbing Peter to pay Paul’ scenario. While rising wages mean tenants have more take-home pay, income increases are being spent on rising rents. There really is no current advantage to getting a pay rise, especially if it pushes someone into a higher take bracket – they could actually end up with less money.