Rents in York are increasing at almost double the rate of the rest of the country, new research shows.
Housing search engine Zoopla found the cost of renting a home in the city rose by 5% in 2019, and now stands at around £844 a month. The average rise in the rest of the country was 2.6%, taking the average nationwide rent to £886 a month.
The figures represent the highest rate of rental growth in three years, compared with Consumer Price Index inflation of just 1.3%.
The York increase, which was beaten only by that in Nottingham (5.8%) and Bristol (5.5%), is down to a mismatch in supply and demand because the relatively high cost of buying a home in York is causing more people to decide to rent, Zoopla concluded. They also found:
- Single earners in York spend an average 27.7% of their earnings on rent, compared with a 31.9% national average.
- A dual income York couple spend 16.6% of their earnings on rent, compared with 16.3% national average.
- The average York home takes 12.8 days to rent out.
“A great city with robust earning potential”
Letters Managing Director Anya Mathewson said: “There’s certainly a huge demand for good rental homes in York at the moment, which is driving rents up.
“But York is also a great city to work, with many job opportunities and robust earning potential. This is reflected in the figures showing people who work in York find rents generally more affordable than the national average.”
Anya pointed out that York house prices have also risen – by an average 171% as a proportion of household income since 1980. But as more households are now dual income and interest rates are far lower, average York homeowners spend 48.2% of their monthly salary on the mortgage, compared with 65.74% in 1980.
She added: “If you can afford it, it’s a great time to invest in York property as a landlord. York’s continuing success is only likely to fuel increased demand from renters, who in turn have good earning potential in this thriving city.”