Rightmove estimates the 'yield' on investment properties is now running at an average of 6% across the UK. Photograph: Steve Parsons/PA
Britain's rental market is "overheating" with a third of tenants in the south-east and London paying more than 50% of their take-home pay to landlords, according to property website Rightmove.
Average rents continue to spiral upwards, with the monthly cost of a typical flat in the capital jumping 2.3% in August alone, and 5.8% over a year, to a record £1,272, according to separate figures from HomeLet, a tenant referencing service.
Fears are growing for a new generation of "trapped renters", squeezed by flat incomes and rising rents which make it virtually impossible to save for a deposit on a new home.
"These 'trapped renters' are faced with the prospect of a downward spiral where spending more income on rent also means saving less for a deposit," said Miles Shipside, director of Rightmove, which estimates that 31% of tenants in the south-east and 29% in London are already spending more than half their take-home pay on rent.
Average rents continue to spiral upwards, with the monthly cost of a typical flat in the capital jumping 2.3% in August alone, and 5.8% over a year, to a record £1,272, according to separate figures from HomeLet, a tenant referencing service.
Fears are growing for a new generation of "trapped renters", squeezed by flat incomes and rising rents which make it virtually impossible to save for a deposit on a new home.
"These 'trapped renters' are faced with the prospect of a downward spiral where spending more income on rent also means saving less for a deposit," said Miles Shipside, director of Rightmove, which estimates that 31% of tenants in the south-east and 29% in London are already spending more than half their take-home pay on rent.
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