Average Rent in UK up 2.3%

The average rent of a newly let property in Britain rose to £996 per calendar month in August, some 2.3% higher than the same time last year, according to the latest lettings sector index.

Two regions, the South East and South West recorded strong annual rental growth of 5.6% to £1,112 and 5.5% to £852 respectively, the data from the Hamptons International index report shows.

Average rents in London grew 2% to £1,737pcm, while in the East of England they increased by 2.8% to £984pcm and in the North of England they were up by 1.2% to £656pcm.

Meanwhile, Scotland saw rents drop by 0.7% to £654pcm, the Midlands fell by 0.6% to £685pcm and Wales saw the greatest drop in rents with the average price falling by 3.5% to £659pcm, according to the figures.

The index report also looked at how much young people spend on renting a room and found that the average 21 to 29 year old spends more than a third, some 34% of their pre-tax income on rent. This year a single room within a house share cost £566pcm, up 1.2% from £559pcm in 2018.

Out of 20 of the largest cities in Britain, Brighton is the least affordable to rent a room with the average cost at £647pcm which accounts for 35% of a 20 something tenant's pre-tax income.

London is the next most expensive where room rents account for 34% of a 21 to 29 year old's income, followed by Glasgow at 33%.

Sheffield is the most affordable city with room rents accounting for 25% of a tenant's income.

Half of Britain's biggest cities reported a year on year increase in room rents, while half reported a fall. Portsmouth recorded the strongest room rental growth, with the average cost of a room rising 7% since last year to £467 while room rents in London rose 2.3% year on year.

Renters would have to pay 31% more to rent a one bedroom home rather than renting a room in a house share. This would take up 47% of the average 21 to 29 years old's pre-tax income.

Aneisha Beveridge, head of research at Hamptons International, said 'Tenants in their twenties spend a third of their pre-tax income on room rents in Britain. Yet the cost of trading up to rent a one bed would take up nearly half of their earnings. With its large student population putting pressure on rental accommodation, Brighton is the most unaffordable city to rent a room.'

She also pointed out that rental growth on newly let properties has doubled since August 2018.