Tenants Continue to Struggle as Rents Continue to Rise

03 June 2012 Categories: News

Tenants Continue to Struggle as Rents Continue to Rise

According to the online rental property portal, Rightmove, a growing number of tenants around the UK are struggling to keep their rented roof over their head as rents continue to steadily rise. At present tenants pay an average of 38% of their wages in rent but it is thought that more than one third of the 3.2million private tenants in the UK pay considerably more than this.

In the South East and London, tenants pay around 41% of their salary out in rental payments however it is estimated that nearly 20% of London tenants pay between 55% and 60% of their take-home pay.

The figures above were released as part of Rightmove’s quarterly consumer confidence report. The report also mentions that over 60% of tenants and nearly 50% of landlords expect rents to increase further over the coming 12 months.

Miles Shipside, director of Rightmove, commented “While the rental bubble is unlikely to deflate as there is no readily acceptable alternative to the rented roof, it does appear to be approaching a limit in some areas. This is a clear sign that rents may be hitting an affordability ceiling in some locations.”