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Above-inflation rent rises cause tenants to struggle

Rent in Greater London rose by 6.7%, bringing the cost to £1224 per month, whereas tenants in the North-East are paying an average of £512 per month.

Ian Fraser, MD of HomeLet, said: "Greater London has seen a greater annual increase in average rents than anywhere else in the UK.

"In contrast, our data shows that tenants living in the capital have only seen their income increase by an average of 0.8%. Therefore, when the 6.7% increase in renting a home is combined with the 2.7% increase in inflation, the budgets of tenants in the capital appear to be strained more than ever.

"Rents do tend to increase towards the summer months, and with an already dwindling supply of properties within the private rented sector, I believe tenants will face even higher increases than normal this year.

"The new ‘bedroom tax’ may also have an impact on demand, as people who face benefits cuts due to the number of spare bedrooms they may have, could move from social housing into the private rented sector. This increase in demand could drive rental amounts even higher, and therefore the construction of affordable new homes – both for rental and purchase – is vital to offer a much-needed supply boost to the industry."

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