UK tenants are now spending an average of 32% of their income on housing, as average monthly rents reached a record £1,382 in August. This figure, reported by HomeLet's August index, marks a 0.9% increase from July and a 4.1% rise over the past year.
In London, the average monthly rent climbed to £2,238 last month, a 1.4% increase from July, bringing its annual growth to 5.1%. London tenants are now allocating 39.8% of their income to rent.
Outside the capital, the average monthly rent was £1,179, up from £1,170 in July, and 3.4% higher than a year ago. The South West saw the strongest annual growth at 5.2%, with rents reaching £1,264 a month, while Northern Ireland recorded the largest monthly increase of 2.4%, bringing its average to £987.
Wales was an exception, with rents falling by 1% both monthly and annually to an average of £925. Julie Ford, founder of Lettings Advice Service, suggested that the consecutive rent increases could reflect the impact of the Renters’ Rights Act on landlord behaviour and market dynamics. She also raised concerns about the sustainability of continued rent growth given that wages are not rising at the same pace as the cost of living.