UK Tenants are now paying more than ever, after the average cost of renting a home increased to £806pcm. This is the first time £800pcm has ever been exceeded and a 2.1% rise, according to the August 2012 HomeLet rental Index.
Renting a home in London also reached new highs after increasing by 2.3% to £1272pcm since July 2012. However tenants are earning less than they did last month and last year - after the average annual income dropped by 1.9% and 0.1% respectively. The south saw the largest annual decrease after average rents lowered by 3.5% to £753 a month. The North East also saw its third consecutive annual decrease after dropping by 3.3% to £524 a month.
Ian Fraser, HomeLet's MD said “The August HomeLet Rental Index shows the average age of the UK tenant has consecutively decreased over the past three years to 32. This is contrary to the average age of a first time buyer that has increase to 37 (Source:ONS) - which could suggest renting a home is the only option for those would-be first time home owners. "In addition, data from this month's report shows that fewer of the tenants we referenced were previously homeowners, and an increased percentage of them previously rented another home. This could be further proof that renting has become a way of life for many, as they remain in rented accommodation for longer."
"Although this is beneficial for landlords and letting agents, tenants are being stretched more than ever, and it will be interesting to see how long they will be able to afford these continually rising living costs"
Source - PROPERTYdrum October 2012