UK Renters Face Growing Strain as Affordability Declines

Renting in England has become increasingly unaffordable, with new data from the Office for National Statistics (ONS) showing that average tenants spent 36.3% of their household income on rent in the financial year ending 2024. The figure is well above the widely accepted affordability threshold of 30%, highlighting growing pressure on households.

By comparison, renters in Wales and Northern Ireland spent 25.9% and 25.3% of their income on rent respectively. London remains the least affordable region, with private tenants allocating an average of 41.6% of household income to rent. In contrast, the North East was the most affordable area, at 19.8%.

Across England and Wales, most regions (save for London) had average rents below the 30% threshold, though precise figures vary. However, the ONS noted that after 2021, rental growth began to outpace income growth, reversing earlier trends where earnings rose faster than rents.

Industry experts warn that the imbalance between supply and demand is at the core of the affordability challenge. Richard Donnell, Executive Director at Zoopla, explained:
“The affordability of renting has worsened in 2024 as rapid growth in rents has outpaced increases in household incomes. Strong demand for rented homes, driven by higher migration for work and study, combined with elevated mortgage rates, has intensified demand while the supply of rental properties has remained static for a decade.”

He added that while Zoopla’s latest rental index showed annual rent growth slowing to 2.8%, the slowest pace in four years, affordability pressures remain acute in many UK cities.

Megan Eighteen, President of ARLA Propertymark, echoed the concerns, citing a combination of higher mortgage rates, rising living costs, and stagnant wage growth in certain regions. She highlighted that average monthly rents in Britain now stand at approximately £1,344, contributing to sustained pressure on household budgets.

“Investment from reliable and professional landlords is essential, as the private rental sector is instrumental in providing housing for the nation,” Eighteen said. “But ongoing regulatory and financial pressures on landlords are reducing supply at a time when demand is rising.”

The latest figures underline the growing strain on UK households and the challenges faced by policymakers. While easing rent inflation may offer some relief, experts stress that increasing the supply of affordable rental homes remains the only sustainable way to address the issue.