Affordability cited as top concern among renters

Affordability of rental homes is the single most important factor for tenants in London, according to new findings.

Research published by Knight Frank revealed that nearly two-thirds of people said this was their main concern when compared to location or space in the property.

A quarter said that location was the most important factor when choosing a rental property.

Just ten per cent said the size of the property was a key consideration.

In London and the south-east, around a fifth of those polled (22 per cent and 20 per cent respectively) are prepared to pay between 40 per cent and 50 per cent of their income on rent.

However, 11 per cent of Londoners are prepared to pay more than 50 per cent, underlining the cost of renting in the  city

Even those earning above the average salary were concerned about the price of property.

The study showed that 67 per cent of those earning between £30,000 and £35,000 a year cited affordability as an issue.

A further 39 per cent of those earning between £50,000 and £60,000 said they were concerned about the price of rental property.

The research also highlighted the importance of the private rented sector. Nearly a third (32 per cent) of tenants say they are living in the private rented sector because it suits their lifestyle and they don't want a mortgage.

Furthermore, half of tenants are willing to pay a slightly higher rent for allocated off-street parking.

Commenting on the findings, Gráinne Gilmore, head of UK Residential Research, said: "Our survey shows that the majority of renters do not view the PRS as just a 'short-term' move. Less than a quarter of tenants expect to leave the sector within two years.”

Essentially, the findings show that in order to meet the growing demand of tenants in the city, landlords will come under increasing pressure to offer affordable and suitable accommodation. 

Published 29th October, 2014

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