Some of Britain’s most affordable homes for buy to let tenants have been revealed in a new study.
Plymouth is the city where rents take the smallest slice of average annual incomes, according to landlord insurance firm Homelet.
Their findings are based on referencing tenants across the UK.
The firm says average rents in Plymouth are £510 a month, while average wages are £30,586.
For tenants, that means they hand over 27% of their monthly income as buy to let rents.
Second in the rankings was Welsh capital Cardiff, with an average monthly rent of £462 taking a 29% bite from an average annual income of £25,765.
Leeds, Norwich and Glasgow took the rest of the top five places with buy to let rents grabbing just over a third of annual incomes.
The most expensive city to rent was unsurprisingly London.
In the capital, rents are around £1,413 a month, and although salaries are much higher, averaging nearly £50,200, the income-to-rent ratio is 49%.
Buy to let rents take a 47% slice from earnings in Edinburgh and Birmingham, while making up the most expensive cities for renters are Bristol and Cambridge, where tenants pay out 43% of their annual income as buy to let rents.
Homelet spokesman Martin Totty said: “Our analysis of the affordability of renting in the UK’s major cities has produced some surprising results. In some parts of the UK, such as Scotland and East Anglia, where rental prices are now falling or stagnant, the data tells us that renting in some cities in these regions is still stretching tenant affordability.
The data has also revealed some unexpected pockets of rental affordability where tenant income is keeping greater pace with rental prices.
“Looking at the city data against the regional and national picture would suggest that areas that were previously very much the domain of home buyers are becoming popular areas for renters too, as families move out of cities for a better quality of life but are unable to join the property market.”
… LandlordZONE.
Article courtesy of LandlordZONE
