RENTAL AFFORDABILITY

News at Ware & Co | 24/10/2023

  • Although earnings in the south of England are generally higher than in other parts of the country, anyone needing to rent a home, will have to give up a higher proportion of their income just to cover the rent.
  • ‘Rental affordability’ is a good indicator of the pressure in any local rental market. It is calculated by taking average rent as a proportion of average earnings in an area – in this case Local Authorities.
  • The situation is most acute in London. A Londoner on an average London salary would have to allocate more than 40% of their earnings to cover the average rent, while in much of the rest of the country the equivalent is between 20% and 30%.
  • Of course, if the earnings are higher, that may still leave more money left over for other expenses and fortunately for many, whilst rent has increased, salaries have too.
  • Surprisingly, there are still areas of the home counties where only 20–30% of incomes are spent on rent such as East and North Hertfordshire, Dover and Folkestone.
 
Source: #Dataloft Rental Market Analytics, Information Works, Land Registry

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