Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

UK Renters Now Spend Nearly a Third of Income on Rent, Report Finds

Tenants across the UK are now spending almost a third of their income on rent, according to Lomond’s latest Quarterly Insights Report. The report highlights ongoing affordability pressures and shifting demand in the private rented sector.

Lomond’s data shows the average UK rent has reached £1,369 per month, representing a 4.3% increase year-on-year. In London, average rents are significantly higher at £2,418 per month, which is 76% above the UK average. The report also notes that the average UK renter is 31.5 years old, with Scotland having the youngest tenant population at an average age of 25, partly due to its large student market.

The report points to changes in tenant and landlord behaviour as the Renters’ Rights Act is implemented and periodic tenancies become standard. Lomond suggests that landlords are increasingly prioritising tenants who are likely to stay longer, rather than simply filling properties quickly.

Regional Trends and Demand Shifts

London recorded the largest volume of new tenancies over the past year. However, Kent saw one of the most significant increases in activity, with the number of tenancies agreed jumping by 121%, according to data from Goodlord and LomondIQ. Demand in Kent remains strong for family housing, particularly two- and three-bedroom properties, and average rents in the area increased by 5% year-on-year. The report attributes this to transport links into London and demand for new-build homes.

Rental growth has also continued in the North West and Yorkshire, where average monthly rents increased by 5% to £1,215 and £1,283 respectively. In the North West, demand has strengthened in rural and semi-rural towns between Liverpool and Manchester. Yorkshire has seen higher numbers of tenants moving into properties compared to the same period last year, with two- and three-bedroom terraced and semi-detached homes remaining among the most sought-after rental properties.

The report indicates that tenants are increasingly seeking a balance of affordability, lifestyle, and access to major employment centres. It also notes that landlords are adapting to a changing regulatory landscape, with a greater emphasis on sustainable, long-term tenancies.