Understanding Your Rent: What even is PCM?

 17th December 2024

How Much is the Average Monthly Rent in the UK?

Before you start your property search, it’s essential to know the average rental costs to ensure you stay within budget. Recent increases have seen rental prices rise, with the average monthly rent in the UK ranging from £500 to £2000, depending on location. Major cities like London remain the most expensive, while regions like the North East are far more affordable.

Weekly Rent vs Monthly Rent

Many property platforms such as Zoopla and Rightmove advertise rental costs as both per week (PW) and per calendar month (PCM). PCM, meaning 'per calendar month,' refers to the total rent paid each month, which simplifies budgeting for most renters. While this might seem confusing, it’s done to help prospective renters estimate affordability.

How to Calculate Weekly Rent from Monthly Rent:

To convert monthly rent into weekly rent:

1. Multiply the monthly rent by 12 (months in a year).

2. Divide the result by 52 (weeks in a year).

For example, if the rent is £800 PCM:

• £800 x 12 = £9600 (annual rent)

• £9600 / 52 = £184.61 per week.

Most UK renters pay monthly, but weekly payment options may be available if needed.

How to Convert Weekly Rent to Monthly Rent

If you’re provided with a weekly rental rate and need to calculate the monthly cost, use the following formula:

(Weekly Rent x 52) / 12 = Monthly Rent

PCM, meaning 'per calendar month,' helps you understand your total monthly outlay.

For instance, if the weekly rent is £185:

• £185 x 52 = £9620 (annual rent)

• £9620 / 12 = £801.67 PCM.

Quick Reference Converter:

• £70.00 PW = £303.33 PCM

• £75.00 PW = £325.00 PCM

• £80.00 PW = £346.67 PCM

• £85.00 PW = £368.33 PCM

• £90.00 PW = £390.00 PCM

How to Calculate Your Rent Per Day

To break down rent into daily costs, you can use two methods:

1. Divide the monthly rent by the number of daysin that month.

• Example: £800 / 30 days = £26.66 per day.

2. Calculate using the annual rent:

• Monthly Rent x 12 / 365.

• Example: (£800 x 12) / 365 = £26.30 per day.

Both methods provide a similar result, and this breakdown can help with budgeting for tighter finances.

How to Calculate What Rent You Can Afford

As a general rule, you should spend no more than 30% of your monthly income on rent. For example:

• If your monthly income is £1800, your ideal rent would be around £540 PCM.

However, this depends on your personal spending habits:

• If you save money by shopping secondhand or bulk buying food, you might afford a higher rent.

• If saving for the future is a priority, aim for a rent that costs 20% of your income, leaving more room for savings.

Budget carefully by weighing up your essential expenses versus your income.

Does Rent Include Utility Bills?

Utility bills are generally not included in rental costs unless:

• You rent a room within a shared house.

• You’re in student accommodation.

Check the property listing or tenancy agreement to confirm whether bills are included. If unsure, always clarify with your estate agent before signing.

When Can Your Rent Be Increased?

Your legal tenancy agreement will outline key terms, including rent costs, responsibilities, and tenancy duration.

According to YouGov, rent increases depend on the type of tenancy:

• Periodic Tenancy (week-to-week or month-to-month): The landlord cannot increase rent more than once per year without your agreement.

• Fixed-Term Tenancy (set duration): Rent can only increase with your consent. If you refuse, any changes must wait until the term ends.

Your landlord must provide one month’s written notice for rent increases.

Avoid Common Rental Calculation Mistakes

A common error when calculating monthly rent is to multiply the weekly rent by 4. However, there are more than 4 weeks in most months. For accurate results, always use the formula:

(Weekly Rent x 52) / 12 = Monthly Rent

PCM, which stands for 'per calendar month,' ensures you calculate rent correctly and avoid underestimating costs.

For example, £100 PW would equal:

• £100 x 52 = £5200 per year.

• £5200 / 12 = £433.33 PCM.

Need More Help? Let’s Simplify Your Rental Journey

Renting doesn’t have to be complicated. By understanding the formulas and calculations for weekly, monthly, and daily rent, you can budget effectively and avoid any surprises.

If you’re unsure or need further assistance, please contact our experts at Deu Estates. Remember, rental listings often use PCM (per calendar month), so understanding these terms will help simplify your search:

• Email: lets@deuestates.co.uk

• Call: 0113 275 1010

We’re here to help you find the perfect property at the right price.