Tenants in the UK are spending nearly a third of their income on rent, according to data from lettings giant Lomond.
It says the average rent across the UK now sits at £1,369 per calendar month (pcm), increasing by +4.3% from the same period last year.
London maintains its command of a significant premium, with average rents now standing at £2418pcm, a full 76% higher than the UK average.
According to Goodlord and Lomond data, the average UK renter is 31.5 years old, with Scotland standing out as home to the youngest renters in the UK, with an average age of just 25 due to the large student population.
The agency says that as the Renters Rights Act (RRA) regulation continues to bed in, and periodic tenancies become the norm, the strategic landlord is shifting from agreeing a tenant quickly to securing the right tenant for the long term.
The data also reveals that London has the largest volume of tenancies created in the last year.
The number of tenancies agreed in Kent has increased a startling 121%, with family housing continuing to lead demand. Kent has also seen its average rents increase +5% compared to the same period last year.
Meanwhile the North West and Yorkshire regions have also seen average monthly rents increase by +5% – to £1215 and £1283 respectively.
In the North West, rural and semi-rural towns situated between Liverpool and Manchester are experiencing increased demand, and Lomond adds that in ‘Burnham world’, there’s potential for Manchester’s position as an economic centre, rather than an alternative to London, to be accelerated.
John Ennis, chief revenue officer at Lomond, adds: “Our insights report shows that the rental market remains resilient, but affordability continues to be a key consideration for many households. With tenants now spending almost a third of their annual income on rent, the importance of delivering well-managed, high-quality homes in the right locations has never been greater.
“What we’re seeing across the UK is not a slowdown in demand, but a shift in renter priorities, with tenants increasingly focused on long-term value.
At the same time, landlords are adapting to a changing regulatory landscape, with the Renters Rights Act encouraging a greater emphasis on sustainable, long-term tenancies. Success in this market is no longer simply about filling a property quickly, but matching the right tenant with the right home and creating tenancies that work for everyone involved.
“What remains consistent is a continued appeal for high-quality rental accommodation in locations that offer a compelling balance of affordability, connectivity and lifestyle.”
