Landlord Rental Market Statistics – 2022 Report
Oct 21, 2022
In recent years, rental prices have increased exponentially, with renters in London currently spending around 41% of their monthly salary on rent. The number of properties occupied by private renters has been increasing gradually since 2000 which is potentially great news if you’re a landlord.
About a fifth of families in the UK currently rent rather than own their property. With the future of property uncertain, experts at Inventory Base have produced a report analysing the current state of the renting and buy-to-let market for both tenants and landlords.
RENTAL YIELD IN LONDON
Average rent per month £1,846, average rent per year £22,152, average house price £523,666, estimated rental yield 4.2%. Gross rental yield is defined as the annual income gained from a property expressed as a percentage of the property’s value or price.
As a landlord, if you plan to buy a property, estimated rental yield is extremely useful, as it provides an indication of whether purchasing a property will be profitable. Market saturation, property price, and average rental cost are all factors involved in determining the gross rental yield as a landlord looking to buy-to-let.
RENT IN LONDON AS A PERCENTAGE OF INCOME
Average rent per month £1,846, average monthly pay £4,475, rent as a percentage of income 41.2%. Residents of London spent an extortionate amount on rent and 2022 represents the largest increase in average rental costs in five years.
Inventory Base used property site Rightmove to identify the average cost of purchasing property in each region of England, and Plumplot to identify the average salary.
