Cost of rent in Cov is falling says research

THE cost of rent in Coventry is falling according to new research - but it still costs a third of an earner’s pay packet every month.

A report by Zoopla reveals that the cost of rent has risen an average of two per cent across the UK - but it has fallen -0.8 per cent in Coventry to £800 per month.

Experts at the property website say that rising rents are down to growing demand and falling supply, while Brexit has been blamed for lower than expected growth in London.

Out of the 40 UK cities which Zoopla included in the research, Coventry saw one of the biggest falls in year-on-year cost of rent.

Only Aberdeen, where the average cost of a rental property decreased by -4.1 per cent, due to the collapse in oil prices, had a bigger fall.

The research also revealed that rental properties in Coventry stay on the market for an average of 17.3 days before a tenant is found, and that single renters spend 31.9% of their wage packet on accommodation.

This is in line with the UK average, at 17 days for a property to find a tenant and 31.8 per cent affordability. But across the West Midlands as a whole, renters spend just 26.6 per cent of their wage packet on rent, and properties take 19.3 days to find a tenant.

But there is good news generally, renting is becoming more affordable, says Zoopla.

Researchers measured the affordability of properties in different cities based on rental costs for a 1-4 bed home as a percentage of average earnings for a single person.

This measure provides a consistent view of affordability over time and the relative level of affordability between geographies.

In higher value areas, multiple earners sharing property improves rental affordability compared to levels for a single earner.

Rental affordability for a single earner varies widely across the UK, from a low of 19 per cent of a single earner’s salary in Hull, to 44 per cent in Oxford.

Oxford, Brighton and Cambridge are, outside of London, the least affordable cities for renters, while Hull, Bradford and Stoke are the most affordable.

Research director Richard Donnell said: “Renting is more affordable today than the 10-year average.

“This follows weak rental growth over the last three years, and an acceleration in the growth of average earnings.

“First-time buyers, 80% of whom exit the private renting sector to buy, has also moderated rental demand.

“Rental affordability varies widely across the country, reflecting the relative strength of local economies. “

Mr Donnell added: “High house prices increase the underlying demand for rented homes. Meanwhile, in markets where buying is more affordable, rental demand is limited, resulting in lower rental values. Whilst 46% of an average single person’s earnings will go on rent in London, the majority do not rent on their own.

“Two people renting a two-bed property in London will spend 24% of their earnings on rent, which increases to 28% for two people renting a three-bed home.”