Rents are more affordable in the majority of the UK than they were before the recession, according to Hometrack data.
Despite concerns about the rising costs of renting, analysis shows that in all areas except London, rents as a percentage of income are below their 2007 levels.
Richard Donnell, research director at Hometrack, said: “The findings will be welcome news to institutional investors, many of whom are looking to capitalise on future growth to fuel higher returns.
“The key for many is that there is potential for rental growth on an improving economic outlook.”
The North West has the highest potential for growth. Rents currently sit at 22% of income, down from 27% in 2007.
At the other end of the market, rents in London stand at 32% of income, compared with 27% eight years ago.
While residential rents themselves are higher than they were in 2007 in most areas, income has risen faster.
In London rents have risen by 32%, compared with 5% outside of the capital.
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