Tenants typically spend a third of their income on rent

Tenants are spending almost a third of annual income on rent, new research has revealed.

The findings by Lomond suggested that tenants typically spend a total of 32.7% of their annual salary on keeping a roof over their head.

The average monthly rent has increased 4.3% year-on-year and currently stands at £1,369.

It comes at a period of huge change for the rental market as the biggest shake-up in a generation – the Renters’ Rights Act – settles in following its introduction earlier this year.

The rental market remains resilient, but affordability continues to be a key consideration for many households.”

John Ennis, Chief Revenue Officer of Lomond , (pictured) says: “Our 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.”

The are big regional differences in terms of rental prices. London commands a substantial premium with average rents reaching £2,418 a month, which is 76% above the average for the country as a whole.

Meanwhile, the North West and Yorkshire both recorded 5% increases in average monthly rents, reaching £1,215 and £1,283 respectively.

Yorkshire lettings remained solid during the three months to the end of June, with more tenants moving in than during the same period last year.

Two and three-bedroom terraces and semi-detached homes were the most sought-after property types.

The data also revealed that the average tenant is 31.5 years old, with Scotland home to the youngest at an average of 25 years old.

Ennis adds: “What we’re seeing 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.”

Ennis says success in the current market is no longer about filling a property quickly, but about matching the right tenant with the right home and creating tenancies that work for everyone involved.