The UK private rental sector continues to enjoy solid demand from tenants; a process that inevitably leads to a rise in the cost of renting a home. However, many parts of the country now see sufficient numbers of tenants generating higher incomes, meaning they don’t experience difficulties in paying their rents, the latest Rental Index of letting services expert HomeLet reveals.
According to its figures, a typical tenant had 7.2% higher income in May 2014 compared to the same period last year. The income of tenants signing rental agreements improved at a greater speed than rents in nine out of the 12 UK regions monitored, with Yorkshire and Humber, Northern and Ireland and Greater London emerging as the sole three areas to buck the trend, the index showed.
In May, tenants paid an average monthly rent of £846, up 7.5% on the year. People taking on properties in the capital saw rental values increase 9.4% in the 12 months to May, reaching £1,348. Outside Greater London, the average rental value went up by 2.5% to £687 a month.
Excluding London, rents added 2.5% in annual terms, HomeLet revealed.
Tenants in East Anglia saw the steepest rise in average rents over the past year, with values going up 10.2% between May 2013 and May 2014. The reasons for the increase could be the region’s close proximity and strong transport links to the capital, which may have had a spill-over effect on demand.
Have you witnessed increased rental amounts in the past year? And do you think higher incomes are enabling tenants to cope with this rise?