You are here: Home - Mortgages - First Time Buyer - News -

Average rent for a one bed property hit £1,010 in August

Written by:
People living in one-bed properties spend more than two thirds of their disposable income on rent, according to figures.

The average rent for a one-bed property in the UK hit £1,010 in August, while the average monthly disposable income was £1,497, according to the latest Landbay Rental Index.

In London, the proportion of monthly income spent on rent is significantly higher. The average rent for a one bed was £1,461 in August, compared to an average disposable income of £1,967. For someone living in a one-bed property in the capital, that’s almost three quarters (74%) of take home pay going toward rent.

Outside of London, this proportion is significantly lower, with just 41% of post-tax income handed over to the landlord each month.

John Goodall, chief executive and founder of Landbay said: “The buy to let market is a vital part of the UK’s housing mix, and rental properties have become an important stepping stone for first time buyers saving up for their own home. However, with a rapidly growing population and a chronic undersupply of new houses, property prices are growing even further out of reach for aspiring homeowners. With rents climbing too, even in the face of Brexit uncertainty, tenants saving up for a house face a triple challenge in trying to catch up with the pace of house price inflation, with more and more of their income spent on rent, and record low interest rates limiting their ability to save money.”

Overall, rents across the UK grew by a modest 0.12% in August, taking annual growth to 1.83%, following a -0.02% fall in July.

The average UK rent regardless of property size is now £1,186, with London’s average being £1,892, and the rest of the UK being £745 per month.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Stock of the week: Babcock International

Graham Spooner, investment research analyst at The Share Centre, picks Babcock International as stock of the week.