North East tenants see disposable incomes swell
Published by Max Salsbury for 24dash.com in Housing and also in Finance
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Tenants living in the North East region of Yorkshire and Humberside appear to have just over £1,000 in additional disposable income than the same time last year, new research has revealed.
Data from the January 2014 HomeLet rental index shows the average cost of renting a home in the area dropped by 3.6% during January to £557 per month: 2.5% less than the same time last year – and the lowest amount recorded since June 2012.
In contrast, the average amount a tenant in the region earns increased by 5.6% during the past 12 months to £23,000 per annum. After taking tax and National Insurance into account, Yorkshire and Humberside’s tenants moving in January 2014 had £1,040 - or 2.8% - more income to spend every year than tenants did in January 2013.
The rental price drop leaves Yorkshire and Humberside as the second most affordable of the UK’s 12 regions.
The average monthly rent cost for the UK as a whole is currently 43.6% more expensive than the region. In Greater London, tenants are currently paying rents 127% more expensive than their northern counterparts.
Gary Abraham, HomeLet’s sales and marketing director, said: “At 32.6, the average age of tenants in Yorkshire and Humberside is 1.2 years less than the overall UK average. When combining this with an increase in their average income, it appears there’s been a rise in the amount of younger, professional people who have moved into a rented home during the past 12 months.
“Our latest data also shows the rate at which rental values are increasing has slowed down throughout the UK following the rapid growth we saw immediately after the 2008 housing crisis - so the decrease in average rental amounts in Yorkshire and Humberside has followed this national trend.
“Yorkshire and Humberside tenants having more disposable income than last year shows renting a home is becoming a much longer term housing solution for many. With a number of Government initiatives planned to develop the rental market, I believe tenant and investor confidence within the region will grow even further and the private rented sector will flourish throughout 2014.”