Tenants now pay over £1,000 per month for typical one-bed property

The average rent for a one-bedroom property was £1,010 in August, according to the latest Landbay Rental Index.

Between July and August, the average rent for this property type increased by 0.1%, with annual growth of 1.7%.

Landbay calculates that during August the average UK rent for all property types was £1,186 – reflecting a 0.12% monthly rise and a year-on-year increase of 1.83%.

The average rent for all property types in the capital fell by 0.01% to £1,892. 

The UK's average rent excluding London was £745 per month, up 2.29% on the same period last year. 

The average rent for a two-bedroom property was £1,149 during August, while for a three-bed it was £1,314. 

Landbay also looked at affordability, calculating that the average one-bed rent accounts for 67% of the average disposable income of £1,497 (according to official government figures).

It says, however, that rental pressures on tenants could be easing as wage growth of 2.4% outweighs the annual rental growth of one-bed properties at 1.7%.

Tenants in London remain the hardest hit, with the average rent for a one-bed property accounting for 74% of average disposable income for residents of the capital. 

Outside of London, rents account for just 41% of post-tax income.

“With a new Prime Minister, a new chancellor, and a new London Mayor, bold new steps should be taken to fix the UK’s housing crisis," says John Goodall, chief executive and founder of Landbay.

"It must be high on the agenda at the upcoming Autumn Statement, especially given that rising rents are partly due to stamp duty increases being passed on renters."

"Phillip Hammond’s fiscal plan should also give more support to savers struggling to find a rewarding home for their money in this protracted period of record low interest rates,” he adds.

*Graham Norwood is away on annual leave until September 28th. Conor Shilling will be undertaking editorial duties in his absence. Please send any press enquiries to press@lettingagenttoday.co.uk