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Rents for One Bedroom Apartments are Reaching New Highs

The average rent for one bedroom apartments has increased to £1,010 per month across the UK for the first time, as tenants spend 67% of their monthly post-tax earnings on rent, says a new report.

The average rent for one bedroom apartments has increased to £1,010 per month across the UK for the first time, as tenants spend 67% of their monthly post-tax earnings on rent, says a new report.

The research, compiled by peer-to-peer lending company Landbay, shows that the average rent for a one bedroom apartment across the UK increased by 0.09% from July to August, bringing the average over the £1,000 mark to £1,010 a month.


Similarly, rents for two bedroom apartments also increased on a monthly basis, with the average rent in August increasing by 0.12% to £1,149 across the UK. Rents for three bedroom apartments, on the other hand, increased monthly by 0.18% to £1,314 in August.


Annually, the highest rise was seen in Wales as rents in the area increased by an abundant 2.16% with the average set at £536; followed by one-bedroom rents in England and Scotland, which rose 1.66% and 1.67% year-on-year, respectively.


Utilizing data for the average disposable household income across the UK as calculated by the Office for National Statistics’ (ONS), Landbay found that tenants of a one-bedroom property payed over two thirds of their disposable income in rental costs in August.


This proportion is more accentuated in London, where tenants of a one-bedroom flat spent on average 74%, or nearly three quarters, of their post-tax wage in rent. The average rent for a one-bedroom flat in the capital was found to have decreased slightly, however, by 0.05% in August.


For all types of properties, rents across the UK continued to grow in August rising by 0.12% from July and 1.83% from the previous year – bringing the UK average monthly rent to £1,186.


In line with Landbays’ findings, separate research found that activity in the buy-to-let market continued to thrive in August as those in the sector adjust to new housing policies and as the post-Brexit shock dissipates.

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