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Rents in Britain Now Account for 53% of the Average Monthly Wage

The average monthly rent across Great Britain, excluding London, has risen to £750 per month, constituting over half of the average wage outside of the capital, says new research.

The average monthly rent across Great Britain, excluding London, has risen to £750 per month, constituting over half of the average wage outside of the capital, says new research.

The latest rental index released by peer-to-peer lending platform Landbay shows that rents across England, Scotland and Wales rose further in December, growing by 2.13%, 1.42% and 1.43% respectively.


Falling behind rental growth are average incomes says the firm, with figures indicating that the average pay outside of the capital has fallen by 2.3% in the first three quarters of 2016, now standing at an average of £1,425 per month.


The fall in the average monthly wage indicates that rental payments outside of the Capital accounted for 53% of a Briton’s disposable income in December – a factor contributing to the rising affordability barriers encountered by those wanting to become homeowners, reports Landbay.


Rents in London, on the other hand, dipped slightly in December by 0.13% to an average of £1,882, but still remain more than double the average rent for the rest of the UK and take up 74% of the average wage in the city.


Commenting on the findings, Landbay’s chief executive officer, John Goodall said:


“Outside the capital, rents continued to grow across the country in 2016, a trend we expect to continue into the coming year.


“Demand for rented accommodation will remain robust, as the myriad threats of rising house prices, falling real incomes and rising inflation affect the ability of aspiring homeowners to get their foot on the housing ladder and save for a deposit”


Earlier this week, mortgage lender Halifax published new figures on the performance of the UK’s housing market in December, signalling a ‘strong finish’ for house prices throughout the year.

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