Rents are rising four times faster than household income according to Homelet.
The insurance provider, which compiles a lettings index, says the average private rent has risen 7.5 per cent in the last year while national average earnings are up 1.7 per cent.
The average UK rent now stands at £846 per month. The largest rent increases were seen in East Anglia and Greater London, where rents were up by 10.7 and 9.4 per cent respectively over the year.
Rent rises outstripped increases in average national earnings in eight out of 12 regions of the country.
The average tenant signing a rental agreement in May this year had an income that was 7.2 per cent higher than those who signed agreements in the same month of last year.
These results suggest that a new, more affluent type of tenant - possibly people for whom house price rises and mortgage market tightening have made purchasing more difficult - is now looking for rental property.
Comments
Osborne and his austerity measures will make sure this doesnt change for a while. The cost of living is only going to go up, whilst household incomes go the other way. With demand continuing to outstrip supply when it comes to rental property, rent prices are going to stay high. More affluent people remaining in the rental market will only make this worse.