Rental and essential housing costs such as electricity and water bills averaged at approximately £944.71 a month, leaving Sheffielders with just under half of their salary left to spend on the likes of food, travel and entertainment.
Cost of living calculations were based on the average post-tax salary in each city against the average cost of a one-bed in the city centre, a Council Tax Band A charge as well as electricity, water and internet costs.
Top of the list is London, followed by Bristol, Birmingham and Manchester. The figures for Sheffield show the average salary per month is £1,850.21, with rent of one-bed accommodation in the city centre costing £653.12.
Electricity and water bills are £149.19, internet costs £28.30 and Council Tax £114.10. The total spend is £944.71, leaving £905.50 – less than half the income.
The data was released by consumer finance experts CashLady.com and shows how the cost of living crisis is affecting renters.
People living alone, particularly in a city centre, are far more likely to be renting. Many in this position have reported feeling less financially secure than couples without children because they have to spend a greater proportion of their income on rent and essential housing costs.
Cash-Lady.com’s Personal Finance Expert, Dan Whittaker said: “With inflation rates rising to a 30 year high amid the cost of living crisis, renting is now more expensive than ever, particularly in the UK’s biggest cities. It’s a real struggle for young people who are not in a financial position to buy a property, and need to live in the city centre to commute to work. Understandably, many feel trapped with no other options right now.
“It’s difficult to avoid being affected by this national crisis, however if you’re struggling with rental costs, there is help and support available through Citizens Advice where you can use their budgeting tool, discuss access to rent deposit schemes as well as claiming the housing element of Universal Credit.”
The figures come as a new study among almost 1,300 landlords found that the most common length of tenancy is over two years, with 18 per cenet of landlords saying their average length of tenancy has increased over the past year.
Only five per cent of landlords have seen the average tenancy length decrease.
The latest data from Rightmove’s Quarterly Rental Tracker shows that national asking rents outside London are rising at the fastest rate ever recorded, now standing at £1,088 per calendar month, up 11 per cent on this time last year.
There are also more than triple the number of tenants enquiring as there are rental properties available, making it the most competitive ever rental market. The lack of available stock is a combination of more tenants staying put in longer tenancies, coupled with high demand from people who didn’t move during the pandemic, or who moved in with friends or family temporarily.
Many landlords have recognised the challenges of rising household bills for tenants, with the majority – 63 per cent – choosing not to put up rents over the past year, while a third have increased rents.