Residential rents have increased both month-on-month and year-on-year across all areas of the UK apart from London and Northern Ireland.
The index was put together by Landbay and showed that national rents went up by 0.82% over the last twelve months and by 0.04% month-on-month.
A breakdown of these figures showed that rents showed a monthly increase of 0.04% in England, of 0.09% in Scotland and of 0.1% in Wales. In London and Northern Ireland, however, rents fell by o.o9% and 0.37% respectively.
The index also revealed that younger adults who lived on their own in a rental home would spend one third, or more, of their monthly income on rent. In the age bracket of 18 years to 39 years, the average rental costs come up to £1,102 a month, which equals 69% of the average salary after tax.
This means young adults who choose to live on their own have little to no money left to spend or save for a deposit. Furthermore, the report also points out that rental costs in the UK have increased by 9% over the last five years.
Once two people are sharing on home with a total rent of £1,152 a month, each tenant will only spend 39% of their income on rent. Once there’s a third person added, the average monthly rent goes up to £1,322 and every tenant’s monthly income proportion spent on rent drops to 30%.
John Goodall, chief executive of Landbay, explained:
“Whether tenants are renting as a stepping stone on the way to home ownership, or choosing to rent for life, this generation are relying on a well-served buy to let market to ensure rental growth doesn’t become unbearable.
What is now needed is some firm Government commitment to improving standards, affordability and supply of rental properties. Institutional investment and the subsequent growth and professionalisation of the private rental sector are already helping control rental growth and improve living standards for renters.”