British renters pay a higher proportion of their wages as well a higher rents, according to the National Housing Federation

Private tenants in the UK are paying higher rents than those anywhere else in Europe and spending a greater chunk of the average pay packet, according to research by the National Housing Federation (NHF).

UK mortgage approvals in May hit 14-month high Read more

UK rents average €902 (£750) a month in comparison to the European average of €481 (£400), according to the NHF, which represents housing associations.

Private renters in the UK spend almost 40% of their income on rent in comparison to the European average of 28%.

Only tenants in Spain come close to meeting the same rental commitments, with their average €622 a month taking up 39% of their income. This compares to Germany where a typical €600 monthly rent takes up 25% of the average pay packet.

“Not only do British renters face crippling rents, but they have almost no certainty about whether they will be able to stay in their home from one year to the next,” said David Orr, chief executive at the NHF.

Short tenancies in the UK mean that 77% of renters in Great Britain and Northern Ireland have moved in the last five years, compared to 43% across Europe as a whole.

The report comes in the wake of findings from the Halifax that show growing numbers of would-be first-time buyers are moving back in with their parents, despite record low mortgage rates and an increasing availability of mortgages for those with small deposits.

The Halifax research, based on 1,000 parents of 20- to 45-year-olds, showed that 28% had taken their offspring back into the family home, compared with 24% in 2012.

However, for those that can get the deposit together, record low mortgage rates are enabling thousands of people to buy a property. Figures released today by the British Bankers’ Association showed that the number of people who were approved for new mortgages in May rose to its highest level since March 2014.

Commenting on the BBA figures, Richard Sexton director of chartered surveyors e.surv, said: “Borrowers finally have more money in their pockets as inflation remains limited and wages are experiencing a tangible rise. Meanwhile, lenders continue to offer an increasing number of products to borrowers with smaller deposits, at record low rates.”

However, rising house prices mean that two thirds of first-time buyers now rely on financial help from parents to buy their first home, the NHF said.