Being a renter is becoming more affordable with costs rising at half of the level of earnings growth during the past year.
Average rents increased by 2% to stand at £876 in the 12 months to the end of September. By contrast average weekly earnings climbed by 4% during the same period.
As a result, the typical renter now spends 31.8% of their earnings on rent, down from a peak of 33.3% in 2016, according to our inaugural Rental Market Report, which records trends in the often-neglected private rented sector.
But despite the overall improvement in affordability, the rate at which rents are rising has accelerated from 1.3% a year earlier to reach a three-year high of 2%, although it still remains below the 10-year average of annual growth of 2.3%
Our director of research and insights, Richard Donnell, said: “Renting is more affordable today than the 10-year average. This follows weak rental growth over the last three years, and an acceleration in the growth of average earnings.”
Link to a Source: Zoopla