Private rent accounting for 44% of average wage
A monthly private rent is now at a record £1,385 outside the capital, and £2,736 within London. In some areas, tenants are paying over 25% more in a year.
According to Rightmove, it was the third consecutive quarterly record for advertised rent this year. Affordability for potential tenants “remains very stretched,” it said. Average earnings meanwhile have risen only 5% compared with 2024, meaning that a private rent is now accounting for 44% of the average wage. Five years ago, it was 40%.
Conditions for landlords, Rightmove said, was also challenging. The recent rise in stamp duty, speculation about more tax changes in the budget, and the impact of the renters’ rights bill, could lead some to reconsider investing in the sector.
Demand for rental properties has outstripped supply, causing private rents to rise so much. The pandemic and its impact on how people live and work, as well as buy-to-let landlords passing on increases in costs have also played a part.
According to Citizens Advice, its analysis of official spending data and information from clients found that private rents were common among those struggling with the cost of living. It was not unusual for someone’s rent to be over half their take-home pay, it said.
The number of homes available, according to Rightmove, had increased by 9% from last year. But that was still 23% less than it was in 2019. The pace at which new rental properties enter the market has slowed in recent months, being just 1% ahead of the same time last year.
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