Yahoo Finance UK rents hit new record with London homes costing close to average monthly salary
Renting a property in Britain has risen to a new record with the average price now 10% higher than this time last year – with London rent now costing 90% of an average salary.
The Rightmove Rental Tracker shows that the average advertised rent for properties is at £1,278 per calendar month (pcm) outside of London, and is up to £2,627 pcm in London, marking a 12.1% increase compared to last year.
This means the average annual rent in London is £31,524 a year.
The average full-time salary in London is just shy of £37,000, according to the Office for National Statistics (ONS), which means a single renter has just £5,476 a year left for other bills, food and expenditure.
Meanwhile, the national average salary or median wage, is £32,000 a year, which after the latest rent prices would leave tenants with £16,664 for other expenditure.
Rightmove said that one of the factors driving rising rents was not enough available rental properties to meet the demand from prospective tenants looking to move.
It said that the average rental property across the UK is currently getting 25 enquiries from prospective tenants, which is more than three times the number were receiving pre-pandemic in 2019.
Ria Laitmer, lettings manager at Clarkes in Dorset, said: “The gap between high demand and a severe shortage of rental stock at the moment is just crazy. We’re receiving mounting enquiries for each property to rent from would-be tenants, with queues of tenants arriving to open-house viewings and the majority being left disappointed as there is just not enough properties on the market to meet the demand.”
More tenants on the move
Overall, Rightmove said the number of tenants looking to move across the UK is 41% higher than in 2019.
Debbie Marsden, director at Marsdens Lettings in Wiltshire, also commented: “Like everywhere else, we’ve been seeing a huge increase in enquiries per property as it’s just a crazily busy market at the moment.
“However, there are signs that the long-lasting imbalance between supply and demand in the rental market is beginning to improve. While demand is still significantly higher than pre-pandemic levels, it has eased by 17% compared to last year.”
Rightmove also noted that the the number of new properties coming to the market to rent is now 7% higher than at this time last year, the biggest annual jump in new properties to rent since November 2022.
“If the improving trend between supply and demand continues, we could start to see the pace of yearly rent rises slow more significantly than it has been,” Rightmove’s director of property science, Tim Bannister, said.
Useful tips for tenants seeking a rental
Bannister also highlighted that in the current market, tenants are having to do more to have the best chance of securing a rental property and shared some actions tenants can take to put themselves in the best position.
“Moving fast to set up a viewing is key, which can be difficult when juggling other commitments. Having instant property alerts set up, and getting to know local estate agents can help to make sure you’re one of the first to know about a new property.”
He also said to “be clear about your non-negotiables from the start,” including your max budget, how many rooms you need and how long you intend on staying at the property.
“Being flexible on a move-in date is tricky, but it can be an attractive addition to a tenant application,” he also highlighted.
Bannister also said it is important to be organised and have your finances and documentation in order early, to be able to move through the tenancy application process smoothly and quickly.
“Renters are increasingly looking outside of traditional hotspots and widening their search when looking for their next home. If you’re able to expand your search it could open up more options to find available properties, and you could potentially find some cheaper properties too,” he added.
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