Yorkshire & Humberside announced as one of the most affordable regions to rent in Great Britain
The demand for, and the supply of, private rented housing has expanded over the last decade. Zoopla has recently published an in-depth analysis of the trends in affordability of renting across the UK since 2007. The research tracked working households where almost 75% of renters work full or part time alongside the average rental cost for a 1-3 bedroom home.
The analysis shows that factors such as migration, employment growth and the relative affordability of home ownership have influenced rents and rental growth across the UK.
Rents up North are at their most affordable for a decade with renters in the Yorkshire and Humber region spending on average just 25% of their earnings on accommodation compared to tenants in the capital handing over 39% of their pay to renting.
As a national overview, renters spent on average 30% of their take-home pay on renting in the final three months of 2018 making the Yorkshire and The Humber region one of the most affordable locations to rent!
Across Great Britain rents have increased on average by 16% during the past decade, in line with changes to earnings, however the North East and Yorkshire & Humber regions have seen the smallest rent increase with only a 1%-9% rise.
Looking below at the rental costs across Great Britain, Zoopla reported that the Yorkshire and Humber region has the most affordable rental cost at just £501 on average for a 2-bedroom home, whilst the national average stands at £676.
Evaluating the link between rents and earnings is an important factor when subsequently assessing the outlook for rental growth and investment.
Richard Donnell, research and insight director at Zoopla, commented on the latest report saying:
“The proportion of earnings spent on rent has remained relatively stable, as renters can only allocate a certain amount of earnings on rental payments. The supply of rented homes is an important driver of rental levels and affordability for renters. Continuing to attract long-term, stable investment that continues to boost the supply of quality rented housing is important for the longer-term health of the private rented sector.”
Read the full market report here.