The cost of renting a one-bedroom property in the UK has risen to almost half of the average young worker’s pay, while those living in London are typically paying over 57% of their monthly wages.
The average cost of a new tenancy on a one-bedroom home hit £746 a month in May, taking up 48% of the take-home pay of a worker aged under 30, data from property firm Countrywide showed.
Tenancies coming up for renewal showed a bigger jump in costs, with rents rising by 5.2% over the year, to an average of £907 a month. In Wales, landlords were charging 9.4% more than in May 2015, with rents at £661 a month.
Recent years have seen a steep increase in the number of tenants, driven by a number of factors including high house prices and harder tests for mortgages. Although the housing market appears to have slowed, there seems to be no let-up in rising rents.
“Many tenants have adapted to rising prices by either moving to cheaper areas, further from the centre, or sharing,” he said. “Stalling rental growth in the capital raises the question whether London’s rents have reached their affordability limits for now.”
Excerpt: The Guardian