Over a third of renters’ average household income goes on rent says the Office for National Statistics (ONS).
In the financial year ending 2024 – the latest figures available – average income tenants spent 36.3% of earnings on rent.
This exceeds the widely accepted 30% affordability threshold.
But renters in Wales and Northern Ireland spent 25.9% and 25.3% respectively, suggesting significant affordability issues for tenants in England.
The ONS adds that while renters’ incomes have generally risen faster than rents across all three nations since 2016, the trend reversed after 2021. In England.
London is the least affordable region, with private tenants spending 41.6% of household income on average rents.
The North East was the most affordable region, on just 19.8%.
Out of 316 local authorities in England and Wales, 68.7% had an average rent below the affordability threshold in 2024, a similar share to the previous year.
Richard Donnell, Executive Director at Zoopla, comments: “The affordability of renting has worsened in 2024 as rapid growth in rents has outpaced the rise increase in household incomes. Strong demand for rented homes on higher migration for work and study together with higher mortgage rates has boosted rental demand while the number of homes for rent has remained static for a decade as landlords slow investment.
“The rental supply/demand imbalance remains but growing affordability pressures for renters, especially across UK cities, is limiting the pace at which rents are rising for new lets.
“Zoopla’s latest rental index shows rents are increasing at 2.7%, the lowest rate for 4 years – since July 2021.”Lower rent inflation will be welcome news for renters but only by growing the supply of rented homes can the pressures on Britains renters be truly eased.”
Megan Eighteen, president of ARLA Propertymark, adds: “Affordability has tightened throughout the UK due to several factors, including rising mortgage rates, increased living costs, and stagnant wage growth in some regions.
“With the average rental price now sitting at £1,344 across the UK, this would mean a renter would need to have a salary of around £40,320 just to qualify to rent a home at this price.
“It’s vital that we address the underlying causes of rising rents directly. Ongoing regulatory and financial pressures on landlords are driving many out of the market, especially when there is such a pressing need for housing, which is a key factor in the significant rent increases we’re seeing.
“Investment from reliable and professional landlords is essential, as the private rental sector is instrumental in providing housing for the nation. This can only be achieved with the backing and understanding of all levels of government across the UK.”
