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Home Press releasesProperty marketThe prime rental hotspots where a month’s rent costs a year’s salary

The prime rental hotspots where a month’s rent costs a year’s salary

Money-in-chainsThe latest insight from London lettings and estate agent,
Benham and Reeves, has revealed that one in five rental properties across Britain command an average rent equal to that of the average monthly income, however, some properties require an entire year’s income, or more, to rent for a single month.

Benham and Reeves analysed current rental market stock* looking at asking rents and how these compare to the earnings of the average person.

The research shows that the average person in Britain takes home £35,481 per year – equating to £2,957 per month.

The analysis of current rental market stock conducted by Benham and Reeves found that more than one in five rental properties (22%) are currently listed with a monthly asking rent at, or above, that of the average monthly earnings of £2,957.

Almost half (47%) of London rental properties commanded an asking rent in excess of the average monthly British income, whilst the East Midlands proved to be the most affordable where just 2.5% of asking rents exceeded this benchmark of monthly income.

Believe it or not, there are some rental properties that command an average monthly asking rent at, or above, the £35,000 threshold of the average annual income in Britain.

Granted, they only account for 0.3% of all current rental listings, but this still amounts to no less than 289 properties currently up for rent.

These super prime lets are almost exclusively located in London, with the capital accounting for 96% of them, although there are a few scattered across the South East (2.4%), North West (1%) and South West (0.3%).

When it comes to London’s super prime rental market, these very top end rental properties are located across just 11 boroughs.

Westminster is home to the highest volume of London’s super prime lets at 160, with these properties accounting for 3.3% of all Westminster rental listings.

Kensington and Chelsea sits second at 80, with other boroughs home to super prime rental listings including, Camden (14), Barnet (13), Brent (3) and Hounslow (2), whilst the City of London, Haringey, Islington and Southwark also boast one super prime let each.

Director of Benham and Reeves, Marc von Grundherr, commented:

“Rents have soared in recent times and our research demonstrates just how tough it is for the average person, with one in five rental properties commanding asking rents that require an entire month’s income or more.

Unfortunately, there’s no end in sight when it comes to the rental crisis and this is largely due to the fact that we simply don’t have an adequate level of stock to meet demand – an issue our new Labour government seems set on exacerbating.

As a result, we’re seeing properties let at pace, often before they’ve even reached the market, with numerous tenants all fighting it out for a single property, which, of course, drives prices ever higher.

If we don’t incentivise landlords to invest into the buy-to-let sector in order to address the imbalance of supply and demand then who knows, we might all be looking at a monthly rent of thirty odd thousand pounds a month before too long.”

Current rental market listings sourced from Rightmove and correct as of 10th September 2024
Average earnings sourced from the Office for National Statistics
Average GB salary (2023 latest) £35,481 per year, £2,957 per month

Table shows the number of current rental listings and what proportion are listed with an asking rent at or above the current monthly income of £2,957
Location Total available rental listings Available rental listings – above average UK salary Proportion %
London 35,508 16,816 47.4%
South East 10,652 1,476 13.9%
South West 5,071 445 8.8%
Yorkshire and the Humber 5,195 308 5.9%
Scotland 2,546 148 5.8%
West Midlands region 6,671 360 5.4%
East of England 5,641 293 5.2%
North West 7,871 292 3.7%
Wales 1,736 61 3.5%
North East 2,628 84 3.2%
East Midlands 9,419 237 2.5%
England 80,891 20,199 25.0%
Great Britain 92,938 20,520 22.1%

Table shows the number of current rental listings and what proportion are listed with an asking rent at or above the current annual income of £35,481
Location Total available rental listings Available rental listings – above average salary Proportion of total above salary listings %
London 35,508 278 96.2%
South East 10,652 7 2.4%
North West 7,871 3 1.0%
South West 5,071 1 0.3%
East Midlands 9,419 0 0.0%
East of England 5,641 0 0.0%
North East 2,628 0 0.0%
West Midlands region 6,671 0 0.0%
Yorkshire and the Humber 5,195 0 0.0%
Wales 1,736 0 0.0%
Scotland 2,546 0 0.0%
England 88,656 289 100.0%
Great Britain 92,938 289 100.0%

Table shows the number of current rental listings and what proportion are listed with an asking rent pm at or above the current annual income of £35,481
Location Total available rental listings Available rental listings – above average salary
Westminster 4,822 160
Kensington and Chelsea 3,821 80
Camden 2,381 14
Barnet 1,315 13
Brent 1,105 3
Hounslow 769 2
Hammersmith and Fulham 1,655 2
City of London 219 1
Haringey 691 1
Islington 1,194 1
Southwark 1,481 1
Barking and Dagenham 230 0
Bexley 184 0
Bromley 358 0
Croydon 754 0
Ealing 1,003 0
Enfield 403 0
Greenwich 805 0
Hackney 879 0
Harrow 566 0
Havering 215 0
Hillingdon 499 0
Kingston upon Thames 505 0
Lambeth 1,268 0
Lewisham 679 0
Merton 564 0
Newham 912 0
Redbridge 337 0
Richmond upon Thames 691 0
Sutton 259 0
Tower Hamlets 2,768 0
Waltham Forest 275 0
Wandsworth 1,901 0
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About the Author

Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 15 international offices.

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