Renting costs soar in the UK

June 15, 2016 by Brendan O'Neill

Landlords

According to recent studies, the cost of renting a one bedroomed property in the UK is now equivalent to around half of the take home pay for a person aged below 30.

Data released by

property company Countrywide, indicates that the cost of renting a one bedroomed home in the UK averages at £746 per month. Those in London pay an average of £1,133 a month, with 57% of net pay being spent on rent. According to the company, the rising cost of rent has meant that more people are considering house shares, with the number of households with four or five people increasing. The number of one person homes in privately rented accommodation has fallen by 3%.

The study was based on data obtained from the Office for National Statistics and properties which are let by Countrywide’s letting agents. The East Midlands has the lowest rent, which accounts for one third of net pay. Since May last year, landlords have increased rents by 2.9%, with the average rent in the UK costing £945 a month. Average rental costs in London have risen by 0.3% and now cost £1,292 a month. In Wales the monthly cost of rent has soared, with the average rent since May last year increasing to £661.

As more people are renting, partly due to the increasing property prices and affordability tests, the monthly cost of rent continues to rise, predicted to continue for the next five years. Mortgage advisers have CeMAP training so that they can help people decide whether buying would be a more suitable and affordable option than renting.