According to FindaProperty.com households in the UK were spending on an average of over £10,000 on rents every year.
The website’s Rental Index showed the households were spending on an average of 38 per cent of their take-home income on rent, while residents in London were shelling out around 71 per cent of the average capital city income for renting property.
The report said that the average rental rate was now £868 per month, one percent more than previous year but below September 2011’s record high of £890. The average annual household income was now £27,242, meaning residents in rented homes were spending £10,416 of this each year on accommodation.
The rental costs for studio, one-bed and two-bed apartments was now at an all-time high, creating a difficult environment for tenants looking for smaller, cheaper accommodation.
Samantha Baden, property analyst at FindaProperty.com, comments that average rental prices had peaked in September of last year but have come down since then, because the rental accomodation increased in the first quarter of the year especially for bigger properties.
In contrast, smaller homes remained in limited supply and as a result, individuals and couples were still facing record asking prices for smaller flats ending up paying more of their overall household income.