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Thursday, March 19, 2015

Rents average 33% of earnings

Despite all the 'noise' about booming rents, rent controls and a decade where house prices have surged and then busted following the financial crisis;  private sector rents as a proportion of average earnings have remained remarkably stable.

The proportion of earnings accounted for by private sector rents has fallen in the band between 31% and 37% since the 4th quarter of 2004 and has averaged 33%.

This means that landlords stand to gain from an improving economy where average earnings rise above the rate of inflation.

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