What Is The Average Rent Prices in UK?
London is ranked 10th among the expensive cities if you plan to reside in Europe. The average rent prices UK for a property across the city are about £880 per month, with a 2.6% annual increase. Perhaps the highest increase rate that we have seen in the past three years.
According to surveys and reports, the increased rental space cost is due to the increasing demand and decreasing supply when it comes to rental properties. In recent years, demand has risen to 8% while supply got a 4% boost. The result is based on new investments from private rented properties falling from previous years since 2016.
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How Much Does Rent Cost In The United Kingdom?
Whether you're an international student, planning to move to the country, or looking for a space to rent near your job, it's vital to understand the average cost for property rental.
That way, you can weigh your options and find the best selections, which is the best suitable for your preference and budget. While living in the capital is far more expensive, and the cost of living is higher, the good news is that the salary rate increases annually.
Having a clear overview of the average cost for your daily and monthly expenses allows you to have smarter decisions for a comfortable life without going broke or can't afford the current price of living. In recent studies, the cost of rental properties ranges from £800 to £900. However, this pricing varies on several factors such as:
Where you plan to reside or the rental property location
Your household type (single, couple, or families)
Deposit, utilities, rent fees, etc
The UK's rental cost per month for every household is about £860 for private rental properties and about £450 for local authorities or housing accommodations (social renters). This figure is based on high-paying rents in the capital. It's also practical to check alternative options like the median. Median is like the midpoint, where half of these renters pay more and half pats less.
The figure that best represents the 'typical' costs for rentals is lower than any average price. The country's median monthly rental fee is about £695 for private rentals and for social rentals is £412.
As a renter, you should also reconsider including insurance content on your monthly or annual budget to ensure your valuables are protected from potential perils such as theft, flood, or fire. Purchasing personal insurance for your valuables is critical as the property renters' insurance won't cover your belongings.
One of the factors that affect the rental cost is the household type you have. For single renters living alone, they usually pay an average price of £675 every month. At the same time, couples with no kids pay about £860 per month. That is already a 28% increase compared to solo households.
Don't be surprised if you'll pay higher when you have children in your household. Most couples with children pay about £950 monthly for rentals. That's already a 9% increase compared to pairs that don't have kids. However, single parents spend an average rent of £765 monthly.
Single people who share rental costs pay higher rent on each household, costing about £1355 monthly. However, if you're at its split cost, they pay less compared to the average price. For instance, two single people sharing a household is equivalent to £677 monthly. That's nearly the same as someone who lives by themselves. If two or more people share the house, the rental cost goes down to about £450 for every person.
Why is Renting Pricey In the UK?
One of the primary reasons why rents in the UK are significantly expensive is the increasing demand and lack of supply. With the demand that continues to outstrip supply and millions are moving to the UK despite the minimal infrastructure to cope with the current market.
With the lack of housing utilities, the stock goes up, and the rent increases yearly. Also, with excessive migration of all forms crowding the UK, it's no surprise that the demand goes higher, and less supply can accommodate the current needs.
House prices continue to increase.
House pricing has skyrocketed with the increased demand for rental properties. People looking to purchase their own homes find it hard to buy one due to the higher cost and less supply. With that, many people are forced to rent rather than to buy their first house. With the increase of rental demand, a few people want to sell their property and find ways to renovate them for rental space.
More rental properties
There are more available rental properties than homes for sale for couples or families who plan to purchase their own living space. With the increase in demand for home rentals, buying a home is surprisingly more expensive than ever.
Not enough affordable homes for rent
With the higher house price, not everyone can afford to purchase their own home. With the current situation, they are forced to rent instead of buying their own space. There are limited to none affordable housing units left in the country.
Read our article : What Is a Flat Guarantor?
Not enough new homes were built.
With the increasing demand and less supply, more people are crowding the streets, and few homes are built yearly. This cannot support the growing demand and, in turn, increases the rental cost for people searching for a place near their job or income source.
Difficulty getting mortgage
With the challenges of getting a mortgage, more people are renting than owning a property. Mortgage lending factors have required buyers to provide higher mortgage deposits while introducing strict affordable policies.
Understanding the factors which affect the cost of renting a property in the UK enables you to weigh your options and seek the best alternatives to meet your current demands. With increased average rent prices in the UK annually, the cost of living also increases together with the demand. Whether you plan to move in the country or from one city to another, it's best to check your options to suit your current budget. This guide provides figures to help you search for the right property ideal for your household, age, and preferred location.