Dudley named cheapest place to rent in West Midlands

Using recently published Government data, the index compares the average percentage of annual salary spent on rental payments to reveal an average rental affordability ratio of 21.8 per cent in the borough, where the average annual salary is £30,742 and mean rental payment £6,700.

Stafford, where the average annual salary is higher at £31,240, has a rental affordability ratio of 22.7 per cent, followed by Lichfield at 22.9 per cent.

The most expensive area to rent in the West Midlands is Stratford-upon-Avon, where renters spend on average 31.4 per cent of annual income on rental payments. Tamworth (31 per cent) and Solihull (30.1 per cent) complete the top three.

Across the whole of the West Midlands, the average rental affordability ratio is 26.4 per cent, with an average annual income of £30,020, placing the region as the median place to rent in the UK.

For Shropshire the affordability ratio is 23.4 per cent based on salary of £30,305 and rental costs of £7,094. Telford and Wrekin is 24 per cent (£6,644 out of £27,670).

It is 23.6 per cent for Wyre Forest, including Kidderminster.

Walsall's percentage is 24.5 per cent and South Staffordshire 25.1 per cent.

Based on Solihull-headquartered Paragon’sindex, the cheapest UK region to rent is the North West with a rental affordability ratio of 23.7 per cent.

Richard Rowntree, Paragon Bank managing director of mortgages, said: “Paragon’s Rental Affordability Index will help landlords make strategic buy-to-let investments and set appropriate rent levels.

“The index will also help tenants identify the most affordable areas to rent, with demand for rental property reaching a five-year high in the second half of 2020 and set to continue rising.”