Average UK rental prices outperformed wages across 2015, according to findings from the monthly Landbay Rental Index.
Despite a seasonal dip in December, the average rents for the UK in 2015 were £1,280, up 3.8% on 2014’s figures.
This means that rents in the UK grew twice as fast as wages; up 1.9% in 2015.
The acceleration of rents above pay indicates that large parts of the UK are suffering from a rental stock shortage. In the East of England, a stagnant wage growth of 0.1%, combined with rapid rent rate rises has meant that the rent growth massively outpaced wage growth by over 5 percentage points.
The North East and North West were the only areas where wage growth outperformed rental rates.
Three bedroom properties have seen the biggest rental rise price, up by 5.2% in 2015, suggesting that larger family properties and properties for sharers are most popular.
Commuter hotspots surrounding London were those which have witnessed the largest rental price increase; Luton (11%), Medway (8.8%) and Thurrock (7.3%), which highlights that renters are moving further out to avoid paying Central London prices.
John Goodall, co-founder and CEO of Landbay commented on the findings: “Rents often track wages as consumers with more pay compete for the most desirable rental properties, but the fact that rents are outpacing wages is a clear sign of the shortage in properties to rent as large parts of the UK face an acute housing shortage.”