An online rental platform suggests almost a third of rental homes may be deemed unaffordable.
Ocasa, using Office for National Statistics data, has analysed the current cost of renting across each postcode in England and Wales, as well as the average household income.
It found 69 per cent of areas classified as affordable.
Across England & Wales, the average annual rent is £12,763 and the average annual household income is £43,341. Therefore, rent accounts for 29 per cent of the average household income, meaning many may be pushing the boundaries of affordability within the sector.
Regionally, rent is most affordable in the North East where it consumes just 20 per cent of the average household income of £35,774.
In Yorkshire & Humber, rent eats up 22 per cent of annual income followed by the East Midlands (23 per cent), North West (24 per cent), West Midlands (25 per cent), and Wales (26 per cent).
Even in the more expensive regional markets, rent remains just about affordable. In the East, South East, and South West of England, average rent ranges from £12,000 to £15,000 and equates to 30 per cent of household income in each region.
The only region where rent is generally unaffordable is London. While the average income is a handsome £54,194, rent consumes 40 per cent of this with an average annual bill of £21,439.
Looking in finer detail, the WR2 postcode in Worcester is the most affordable pocket of the rental market, where a year’s rent costs just 15 per cent of the average household income of £41,900.
Head of sales and marketing at Ocasa, Jack Godby, comments: “It’s reassuring to see that the topline cost of renting remains theoretically affordable for the average household but it’s fair to say that this probably isn’t the reality facing many at the moment, as the cost of living crisis is putting a real squeeze on our finances.
|The cost of rent alone might not break the bank, but once you add household bills and travel, it equates to quite a considerable sum for the average household and millions of people are currently struggling to cover these costs.”
