UK Rent Freedom Day 2018 is 30th June

Rent Freedom Day 2018


We’ve researched average rents and earnings across the UK, to bring you Rent Freedom Day: the day of the year when you earn enough to pay off your annual rent.


What is Rent Freedom Day?

Until Rent Freedom Day, all the money the average renter earns is going towards their rent for the year.

Rent Freedom Day is the day on which the average renter earns enough money to pay their annual rent, assuming one person renting a one-bed property. It is an indication of the affordability of renting in a given area.

UK & Regional Rent Freedom Day Dates

UK:                                    30th June

London:                             14th September

UK (excl. London)             21st April

The results are pretty depressing. A UK tenant earning the average income and paying the average rent for a one-bed property has to wait until 30th June to earn enough take-home pay to cover their rent.

That means 50% of the average renter’s take-home pay goes to rent, unless they decide to move in with their partner, or share a property with other households.

It is Londoners who have longest to wait before earning their annual rent, taking until the 14th September to overcome their rental costs. If we exclude London, then Rent Freedom Day for the rest of the UK comes right down to 21st April.

North/South Divide

Elsewhere, Southern English cities performed worse than their Northern counterparts, with Southampton, Bristol and Oxford all in the bottom five.

In Scotland, tenants in Edinburgh have to wait until 1st June to be free from rental costs. Renters in Cardiff have it slightly better, seeing Rent Freedom Day on 16th May.

Rural areas and cities in the North have the most affordable rent. Renters in rural areas like Northumberland, Shropshire and Lincolnshire earn their annual rent by mid-April. Meanwhile, the most affordable place to rent is Bradford, where Rent Freedom Day is 5th April.

Rent Freedom Day Infographic_Embargoed until 20th Feb

 

 

RankingLocationRent Freedom DayAverage Monthly Rent (£)Average Annual Post-Tax Income (£)
1Bradford05-Apr375.0517,233
2Northumberland06-Apr389.2917,848
3Lincolnshire11-Apr393.3317,065
4Sunderland17-Apr430.9917,600
5Shropshire & Mid Wales19-Apr439.5917,599
6Liverpool20-Apr455.3118,078
7Newcastle29-Apr477.6717,618
8Leeds02-May530.3619,079
9Sheffield02-May500.5317,986
10Devon03-May475.4016,918
11Norfolk07-May499.7617,282
12Leicester15-May503.6616,338
13Cardiff16-May592.4119,146
14Nottingham20-May515.6616,154
15Manchester20-May560.1117,505
16Birmingham22-May591.7118,198
17Glasgow26-May610.87 18,286
18Southampton01-Jun639.5518,403
19Edinburgh01-Jun702.5620,199
20Bristol25-Jun772.0919,231
21Oxford27-Jul994.9720,988
22Central London10-Sep1413.5224,496
23London14-Sep1348.9423,028

Notes on the Data

This data uses the average personal income by area as supplied by the ONS. After-tax salary is approximate and assumes no student loans and age<69. Daily income is per calendar day of the year, not working/week day. Take-home pay after tax is calculated by the Salary Calculator.

It uses OpenRent’s average rental data for one-bed properties (excluding studios and rooms in shared accommodation).

It should be noted that renters are much more likely to be in the bottom two income quintiles than mortgagers or owner occupiers. Therefore, the ‘real’ Rent Freedom Day could be later than these results show.


Start the discussion at community.openrent.co.uk


This article is not intended to form legal or investment advice. Investments in property are not guaranteed and can decrease in value as well as increase.

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