Rental affordability hits decade high in the north while London is still the most unaffordable

The latest research by Zoopla shows that rental affordability in the North is at its highest in a decade, while London predictably remains the most unaffordable region.

  • Rents are set to rise with earnings
  • Demand is strongest in the South East
  • Occupancy numbers are often overlooked when considering rental affordability

 

Co-founder of flatshare platform, Tom Gatzen, commented:

Despite the slowdown in the London sales market, the high cost of buying in the capital continues to put pressure on the rental sector despite weaker rates of rental growth and as a result, the capital’s tenants aren’t really feeling the joy in the current market climate.

While the available earnings may be higher than elsewhere, the high cost of living also continues to put pressure on those stuck in the rental sector and London continues to lead the way in terms of the most unaffordable city for UK tenants.

Of course, as this report suggests, one area that is rarely considered is occupancy levels and I think the consistent issues surrounding affordability are the driving factor behind the increasing trend of co-living in the capital.

For many, opting to share a house or flat with others is one way of beating the London rental market at its own game and by sharing the cost, not only can you address affordability issues, but you can improve your quality of life and level of disposable income.

 

Callum Brannan, CEO and founder of Howsy, commented:

This latest data highlights the diversity of the UK rental market and how the ratio of earnings to rents varies from region to region, with the most affordable mix not necessarily home to the highest earnings.

We’ve seen recent uplifts in wage growth and and an acceptance by landlords that tenants can only pay so much in rent in order to service, both of which have helped boost rental affordability, particularly in the northern regions.

Of course, the more inflated markets see rental affordability remain fairly restricted and a lack of suitable stock will only exacerbate that in the long run.

In addition to this, with changes to the buy-to-let on the horizon, there is a wide expectation across the industry that tenants will bear the brunt of any financial loss and this could see a further reduction in rental affordability across the board.

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

Breaking Property News – 28/03/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   tlyfe the tenant App gets huge marketing boost from national team tour from the Openbrix team As many will know tlyfe, powered by OpenBrix, is the UK’s most innovative tenant lifecycle app, taking the stress out of the move in process and helping to…
Read More
Breaking News

Over Four Out Of Five Tenants Unaware Of The Renters Reform Bill

OVER four out of five tenants remain unaware of the Renters (Reform) Bill and its contents, according to new research. The data comes from a representative survey of over 2,000 private renters conducted by the TDS Charitable Foundation, which works to advance education about housing rights and obligations in the private rented sector. The Bill…
Read More
Estate Agent Talk

What is Property Damage in a Personal Injury Case?

Property damage refers to any damage that affects things instead of a person. This might include damage to your car, house, etc. As such, it is not regarded as a personal injury case. However, when an individual is injured when the accident occurs, the affected person can file a personal injury claim. A typical example…
Read More
Love or Hate Rightmove
Breaking News

Rightmove comment on new 99% first-time buyer mortgage product

Matt Smith, Rightmove’s mortgage expert said: “It’s encouraging to see lenders continuing to try to innovate in the mortgage market, even after the government abandoned its own plans to encourage lower deposit mortgages in the Spring Budget. This new product has the potential to help some first-time buyers who fit the affordability criteria, but are struggling…
Read More
Breaking News

Breaking Property News – 27/03/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Coadjute ahead of the game as they are already licensed to provide digital TA6 Forms to property stakeholders This week, the Law Society announced its TA6 Form will now include Material Information as per the the National Trading Standards Estate and Letting Agency Team…
Read More
Breaking News

Breaking Property News – 26/03/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Sharing Success: The Guild Conference and Awards celebrate Member achievements The QEII Centre in Westminster, London, was abuzz with excitement on Friday, 22 March 2024, as The Guild of Property Professionals hosted its highly anticipated annual Guild Conference and Awards. Under the theme ‘Sharing…
Read More