New research shows that Exeter has seen the highest increase in average rent across whole of England over the past five years.
Howard Lloyd www.devonlive.com
Average rent in the city has jumped an incredible 39 per cent in five years, according to findings from international rental marketplace Spotahome.
According to numbers from the Office for National Statistics, in 2015 the average monthly rent stood at £853. It has gone up now to an eye-watering £1,201 – a £337 difference.
Nowhere else in England has seen a rise of that magnitude.
Nadia Butt, UK and Ireland country manager of Spotahome, said: “While London remains the most expensive place to rent in the UK this causes many tenants to automatically assume that this cost has continued to increase over the last few years and this simply isn’t the case.
“When you consider the higher cost of renting within the capital is partially offset by the higher wages on offer, and that this wage growth has remained fairly consistent, it means that London tenants are actually much better off now than when compared to five years ago.”
Second on the list is Oxford, which has seen a 32 per cent rise. Rent there in 2015 averaged £1,204, but it now stands at £1,588 – an increase of £384.
Newcastle-under-Lyme is third, with rent increasing from £506 to £662 – a growth of £156 – while Bristol is joint-fourth with Newcastle upon Tyne, Leicester and Norwich.
The South West city has gone from averaging £915 to £1,175 – a £260 increase equating to 28 per cent.
Interestingly, three London boroughs are among the 10 areas to have seen the largest declines in the past five years – Hounslow, Richmond and Kingston.
The figures are also set against a backdrop of the South West seeing the biggest reduction in rental affordability year on year.
While the average net wage in the region has increased by +1.7 per cent to £1,890 in the last year, the average monthly rent has also jumped by +6.1 per cent to £892 today – the largest increase of all regions.
As a result, the cost of renting now requires 47.2 per cent of the average monthly earnings in the region, up +1.9 per cent from 45.2 per cent last year.
Founder and CEO of Howsy, Calum Brannan, added: “The cost of renting has continued to climb across much of the nation and as a result, many tenants are now paying more of their monthly earnings on rent despite a steady increase in income.
“The current impact of the pandemic is perhaps clearest within the capital where a severe fall in demand levels has seen rents tumble.
“However, while the topline figures show that London’s tenants are now paying less of their income on rent, this won’t be the reality for many who find themselves out of work or on furlough as a result of the current landscape.”