Solo tenants pay 69% of wage on rent
Solo tenants aged between 18 and 39 and living alone spend 69 per cent of their monthly post-tax income on rent according to investment company Landbay.
This category of tenant has an average of £1,447 after tax each month, of which they spend £1,012 on rent.
In a shared house of two people, the overall average rent of £1,152 adds up to 39 per cent of each tenant’s income, while those co-habiting in a three-bed property would each spend 30 per cent of their monthly take home pay on the typical rent of £1,322.
Rents have continued to rise over the last five years, increasing by nine per cent across the UK since April 2012 and by eight per cent in London – with monthly payments remaining a huge burden on those struggling to save, despite the pace of rental growth beginning to slow since August 2015, from 2.66 per cent to 0.82 per cent.
While rents have begun to fall in prime central London, Landbay claims that outer London boroughs popular with millennials such as Barking and Dagenham, Havering and Bexley have seen rents grow by 26 per cent, 18.9 per cent and 18.2 per cent respectively.