London Rents Take 42% of Income, ONS Finds

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Renting has become increasingly unaffordable in England, with new data from the Office for National Statistics (ONS) showing that tenants now spend an average of 36.3% of their income on rent, up from 34.2% in 2023.

The ONS report highlights that housing costs in London remain the highest, with average rents of £1,957 per month consuming 41.6% of tenants’ gross earnings. Kensington and Chelsea was the least affordable borough, where those on median incomes spent 74.3% of their salary on rent. Other boroughs with high ratios included Westminster (55.8%), Wandsworth (54%), and Camden (51.7%).

Across England, affordability has steadily worsened as rent prices continue to rise faster than wages. The ONS affordability threshold is 30%, meaning average rent is now significantly above what is considered manageable for most households.

Outside the capital, other areas with high rent-to-income ratios include Bristol (44.6%), Bath and North East Somerset (42.7%), Brighton (42.7%), and Trafford (41.3%). In contrast, the north-east of England remains the most affordable region, with average monthly rents of £641, accounting for just 19.8% of income.

In Wales, only Cardiff and the Vale of Glamorgan exceeded the 30% affordability limit, while rents in the rest of the country were within affordable levels. Northern Ireland’s average rent ratio edged up slightly from 25.1% to 25.3%.

Industry experts have warned that the trend is putting increasing pressure on households. Tom Darling of the Renters’ Reform Coalition said the figures showed affordability remained the central challenge for tenants. He argued that the government’s renters’ rights bill would improve security and standards but would not address rising costs.

Sarah Coles, head of personal finance at Hargreaves Lansdown, noted that many landlords are leaving the market due to higher taxes and regulatory changes, resulting in fewer available properties and pushing rents higher. Joseph Elliott, an analyst at the Joseph Rowntree Foundation, added that high rents are contributing to financial strain and difficulties accessing secure housing.

The ONS findings underline the growing gap between wages and rental costs, with affordability pressures expected to continue in the year ahead.