The average rent in Plymouth takes up just over a quarter of an individual’s monthly income, whereas in London it is taking away nearly half.
According to Homelet, the industry body for the private rented sector, the average rent fell by £40 (£918 to £878) from September to October, which is the biggest decrease month-on-month since January 2010.
The cost of lettings increased over the summer, ready for students to choose new homes for the next University year and families to move based on their child’s school schedule.
Demand stifled this autumn as it typically does, but this was a bigger decrease than expected according to the director of Homelet, Molly Chesney. Landlords adjusting their prices to the demand drove this seasonal drop.
“More than the home sales market, rents are absolutely linked to income”, Ms Chesney explains. “The first check is income to rent so landlords know what people can afford.”
Over the past six months, rents have been steadily rising due to the large increase in house prices last year. This has put the dream of home ownership out of reach for many.
Ms Chesney follows on to say: “My instinct is that this fall [in rents] is linked to affordability. Rents have been driven up recently and have now hit a natural ceiling.”
Even though Plymouth sees the best value for renting in the UK, overall in the South West rental prices have been rising as people selling up from London look for a lifestyle change.
A recent study by Savills discovered there is a rising trend for families looking to rent farmhouses or converted outhouses in the grounds of a manor house.