Finance

How do rises in rent compare to other major living costs?

Property Reporter
|
30th July 2020
rent

Is it me, or are things getting more expensive?

Unfortunately, the cost of living really is getting more expensive. Everything from food and clothes to cars and paying for our homes is going up in price. For many, the cost of our homes is the biggest regular monthly expense. But how does this rising cost for renters compare to the other living expenses?

Newly released data from deposit replacement scheme, Ome, highlights how the cost of internet, cars and our grocery shop have all outstripped the cost of renting over the last three years.

The firm looked at the average price of seven main costs of living and how these have changed over the last three years while taking inflation into account.

Figures reveal that the average cost of renting in the UK has steadily increased, climbing from £683 to £692 per month over the last three years: an increase of 1.4%.

At the same time, the cost of having the internet has jumped by 9.3%, although this cost is much more manageable due to the lower monthly cost compared to renting, now at an average of £30.32 per month.

The average cost of buying a new car has also increased at a higher rate than renting. At £18,622, it’s up by 8.4%, while the annual cost of our grocery shop is up 2.1%.

The good news?

The average net salary has also increased by more than the average cost of renting, up 1.8% to £24,365.

At the same time, the cost of childcare (0.3%) has increased at a lower rate than renting. Utility bills (-3.5%) and exercise amenities such as gyms (-11%) have seen a drop in costs over the last three years.

Matthew Hooker, Co-founder of Ome, commented: “The issue with renting is, of course, the consistent requirement to find a notable sum of money every month, meaning that many have to juggle their finances in order to accommodate rental sector payments as well as other living expenses.

“However, it’s reassuring to see that, at the very least, the cost of renting hasn’t seen the largest increase in price over the last three years. At the same time, the areas of life that have jumped significantly are one-off purchases such as cars, or more manageable outgoings that we can reduce if needed, such as our internet or grocery bills.

“It’s also great to see that some of the more essential aspects of life, such as childcare, our utility bills and the cost of exercising have also grown at a much lower rate or have fallen altogether.

“So those benefitting are now seeing more money in their pocket to help with the higher cost of renting.”

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