Tenants typically spend a third of their income on rent
Summary
New research from Lomond suggests tenants are now spending 32.7% of annual income on rent, with average monthly rents up 4.3% year-on-year to £1,369. The article also highlights significant regional variation, with London rents well above the national average and continued demand for family-sized homes in some regions.
Why it matters
Affordability pressures and shifting tenant priorities affect rental demand, void management and the type of stock most likely to let well. The reference to the Renters’ Rights Act also signals an evolving regulatory environment that surveyors involved in lettings, valuation and asset advice should track.
Key points
- Tenants are spending 32.7% of annual income on rent on average.
- Average monthly rent has risen 4.3% year-on-year to £1,369.
- London rents average £2,418 per month, 76% above the national average.
- Demand remains strong for two- and three-bedroom terraces and semi-detached homes in Yorkshire.
- The article links market conditions with the introduction of the Renters’ Rights Act.
Organisations:
Lomond, The Negotiator
Regulations:
Renters’ Rights Act
Locations:
London, North West, Yorkshire, Scotland
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