SEPTEMBER 25, 2015 | BY A & S Property
Average tenant spends 41% of pay packet on rent
The average tenant in the UK spends 41% of their monthly salary on rent, according to new research.
London's tenants fork out the highest proportion of their pay check on rent (50%), while in the North East the average tenant gives the lowest proportion of their monthly pay to their landlord.
The capital's tenants are the only group to spend more than the national average on rent each month, while tenants in Yorkshire & the Humber, the East Midlands, Wales and Scotland can all expect to spend less than 30% of their monthly salary on rent payments.
Online letting agent Rentify carried out the research and it calculated the figures using average gross salaries for each region from the Office for National Statistics and the latest rental figures from HomeLet.
Rentify's chief executive George Spencer says he is 'staggered' to see tenants spending so much of their salaries on keeping a roof over their head.
"Housing supply is drying up and causing price pressure on landlords which is filtering down to tenants. In London in particular, developments containing hundreds of flats are often sold before construction has even begun. There needs to be a change in the planning laws which is holding us back. The shortage of homes is hugely harmful, socially as well as economically," he says.
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