Data from the January 2014 HomeLet Rental Index shows the average cost of renting a home in Yorkshire and Humberside decreased by 3.6% during January 2014 to £557 per month. This amount is also 2.5% less than the same time last year – and the lowest amount recorded since June 2012.
In contrast, the average amount a tenant in the region earns increased by 5.6% during the past 12 months to £23,000 per annum. Therefore, after taking tax and National Insurance into account, Yorkshire and Humberside’s tenants moving in January 2014 had £1,040 - or 2.8% - more income to spend every year than tenants did in January 2013.
The decrease in rental amounts means Yorkshire and Humberside is the second most affordable of the UK’s 12 regions – and the overall UK average is currently being 43.6% more expensive. When comparing Yorkshire and Humberside to the most expensive region, Greater London, tenants in the capital are currently paying rents that are 127% more than their northern counterparts.
Gary Abraham, HomeLet’s Sales and Marketing Director, said: “At 32.6, the average age of tenants in Yorkshire and Humberside is 1.2 years less than the overall UK average. When combining this with an increase in their average income, it appears there’s been a rise in the amount of younger, professional people who have moved into a rented home during the past 12 months.
“Our latest data also shows the rate at which rental values are increasing has slowed down throughout the UK following the rapid growth we saw immediately after the 2008 housing crisis - so the decrease in average rental amounts in Yorkshire and Humberside has followed this national trend.
“Yorkshire and Humberside tenants having more disposable income than last year shows renting a home is becoming a much longer term housing solution for many. With a number of Government initiatives planned to develop the rental market, I believe tenant and investor confidence within the region will grow even further and the private rented sector will flourish throughout 2014.”