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London PRS rents now costing 60% of monthly salary

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London PRS rents now costing 60% of monthly salary

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Published by Max Salsbury for 24dash.com in Housing and also in Finance

Key players move to position private rented sector as tenure of choice to solve housing crisis Key players move to position private rented sector as tenure of choice to solve housing crisis

Rents in London's private rented sector (PRS) now cost more than 60% of the average monthly salary.

And the latest National Lettings Index reveals that an average of six tenants are chasing every available UK property - the highest number since 2011.

Across the UK as a whole, the average rent is eating up 33% of tenants' wages.

Shockingly, if the NLI figures are to be believed, UK tenant applications have risen 15% annually, while the supply of rental homes has dropped 17%.

Alex Hilton, director of campaign group Generation Rent, said: "Because people have no other choice of where to live, it's hard to describe this as anything other than exploitation."

Rents in London have hit a four-year high, increasing 10% annually to £1,515 – 60% of an average Londoner’s salary.

Stephen Nation, head of lettings for Sequence, said: “Demand to rent across the UK has reached record highs, with six prospective tenants competing for every available rental property. This has caused rents to rise 4% annually and now accounts for more than a third of the average UK salary.

“The rental market in London is a hive of activity, with close to seven tenants chasing every available property. Demand to rent in the capital is rising at more than nine times the rate of supply reaching a four year high of £1,515 per month, up 10% annually."

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