How much do tenants spend on rent?
We have been looking into new rental data that reveals more insight into the profile of tenants across the country. Specifically, we have looked at the proportion of income that tenants spend on their rent.
When we look at the East Midlands, the average tenant is spending 25.8% of their income on rent per month!
Income to rent ratios are typically based on households or, if they are tenant specific, compare incomes to the total property rent. But many households have more than one earner contributing to the rent. Our analysis looks at the proportion of income in relation only to their share or liability of the rent.
This approach results in lower proportions than are often quoted – always remembering that if a household member stops earning for any reason, the burden on the remaining earner will shoot up.
Across England and Wales in 2017, tenants paid an average of 28% of their gross income on their share of the rent. There are understandably regional variations. In London, tenants pay an average of 31% of their gross income on their rent while in the North East, the proportion is 24%.
We will be looking more closely at the figures for the local Leicester area over the coming weeks and its impact on Leicester Landlords & Tenants.
If you would like to know what is happening in the local Leicester Rental Market and the impact on tennts income to rent ratios, please feel free to drop me a line @ firstname.lastname@example.org or call 07917 899495.