![\"Income](\"https:\/\/www.benhams.com\/press-release\/wp-content\/uploads\/2020\/01\/Income-to-rent-ratio-release-300x166.jpg\")
The latest research by lettings and sales agent, Benham and Reeves, has revealed the amount of net income required to cover the cost of renting has increased +16.8% in the last two decades to 45.5% nationally, now accounting for 74.8% of the average salary in London having jumped +33.7% since the turn of the millennium. <\/p>\n
The research shows that 20 years ago, the average rent accounted for 28.7% of the average income in England. This was of course higher in London where 41.1% of income was required to cover rent, with the South East (31.2%) and South West (29.4%) also amongst some of the highest of all regions.<\/p>\n
Today, the proportion of income required to cover the cost of renting has increased by +16.8% across England to 45.5%.<\/p>\n
Again, London has seen the most drastic increase with an eye-watering 74.8% of the average income now required to cover the average cost of renting \u2013 a +33.7% increase in the last 20 years.<\/p>\n
The East of England has seen the second largest increase in that time, up +18.7% , while the South East has seen the third largest increase (+18.6%) and is currently home to the second largest income to rent ratio at 49.8%.<\/p>\n
20 years ago, the East Midlands was home to the lowest income to rent ratio with 24% of earnings required for the average rent, today the North East is home to the most favourable ratio at 32% and has also seen the smallest increase in the last 20 years (7.4%).<\/p>\n
Director of Benham and Reeves, Marc von Grundherr, commented: <\/strong><\/p>\n \u201cThere\u2019s been plenty of positive changes to the rental market in the last 20 years with better codes of practice and improvements through technology allowing for a fairer, more transparent process for both landlords and tenants.<\/p>\n Unfortunately, the one thing this can\u2019t address is the huge demand for rental properties and the resulting increase in the cost of renting as a result and with wage growth failing to keep pace, the proportion of our earnings required to cover rent has spiked notably since the turn of the millennium.\u201d<\/p>\n The latest research by lettings and sales agent, Benham and Reeves, has revealed the amount of net income required to cover the cost of renting has increased +16.8% in the last two decades to 45.5% nationally, now accounting for 74.8% of the average salary in London having jumped +33.7% since the turn of the millennium.<\/p>\n","protected":false},"author":5,"featured_media":147,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[462],"tags":[],"class_list":["post-148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlords-investors"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts\/148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/comments?post=148"}],"version-history":[{"count":14,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts\/148\/revisions"}],"predecessor-version":[{"id":1205,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts\/148\/revisions\/1205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/media\/147"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/media?parent=148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/categories?post=148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/tags?post=148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n\n\n
\n Rent as % of NET salary<\/th>\n<\/tr>\n \n Location<\/th>\n 2000<\/th>\n 2020<\/th>\n Increase (%)<\/th>\n<\/tr>\n \n England<\/td>\n 28.7%<\/td>\n 45.5%<\/td>\n 16.8%<\/td>\n<\/tr>\n \n <\/td>\n<\/tr>\n \n London<\/td>\n 41.1%<\/td>\n 74.8%<\/td>\n 33.7%<\/td>\n<\/tr>\n \n South East<\/td>\n 31.2%<\/td>\n 49.8%<\/td>\n 18.6%<\/td>\n<\/tr>\n \n South West<\/td>\n 29.4%<\/td>\n 47.9%<\/td>\n 18.4%<\/td>\n<\/tr>\n \n East of England<\/td>\n 26.8%<\/td>\n 45.5%<\/td>\n 18.7%<\/td>\n<\/tr>\n \n West Midlands<\/td>\n 27.5%<\/td>\n 38.2%<\/td>\n 10.7%<\/td>\n<\/tr>\n \n Yorkshire and the Humber<\/td>\n 24.8%<\/td>\n 36.4%<\/td>\n 11.6%<\/td>\n<\/tr>\n \n East Midlands<\/td>\n 24.0%<\/td>\n 36.3%<\/td>\n 12.4%<\/td>\n<\/tr>\n \n North West<\/td>\n 25.5%<\/td>\n 35.7%<\/td>\n 10.2%<\/td>\n<\/tr>\n \n North East<\/td>\n 24.6%<\/td>\n 32.0%<\/td>\n 7.4%<\/td>\n<\/tr>\n \n Sorted by largest increase in the last two decades<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"