Data on Friday revealed that in the capital, 75% of income is needed for rent.
Latest research by lettings and sales agency Benham & Reeves reveals that in the UK, the net income needed to pay rent has increased to 45.5%, accounting for 74.8% of the average salary in London. Ta.
In the early 2000s, average rent in the UK accounted for 28.7% of average income, and it took 41.1% of income to cover rent in London.
The political and economic uncertainty that has prevailed in the UK over the past year has caused concern in the housing market. Indeed, with several extensions to the Brexit deadline, an attempt to prorogue Parliament, and a general election all within a year, the UK political landscape is quite chaotic to say the least.
Housebuilder Taylor Wimpey (LON:TW) said earlier this week that it welcomed “increased political stability” following the events of last year.
“There have been many positive changes in the rental market over the past 20 years, with improvements in codes of practice and improvements in technology enabling a fairer and more transparent process for both landlords and tenants.” said Benham & Reeves Director Mark von Glander. said in a statement.
“Unfortunately, what this method cannot address is the huge demand for rental properties and the resulting rise in rents, and because wage growth has not kept up, the proportion of income needed to cover rent is decreasing. “It’s been on the rise, especially since the beginning of 2000,” Benham and Reeves continued.
Shares of Taylor Wimpey plc (LON:TW) rose on Friday, trading at +0.81% as of 9:22 a.m. Japan time.
