Rent rises are cooling but tenant affordability issues remain

Rent rises are cooling in some parts of the country, but not enough to help alleviate tenant affordability issues, research reveals.

The latest data from Canopy’s Q3 Rental Affordability Index also found that the average renter is now spending 41% of their take-home income on rent.

The index, which draws on more than 112,000 data points, shows that while overall affordability has seen little movement since the second quarter, regional differences are starting to widen.

The North West and Yorkshire and Humber have emerged as rare bright spots, offering tenants some breathing space and renewed potential to save for future homeownership.

Tenant checking is crucial

The firm’s chief executive, Gary Barker, said: “Our rental affordability index shows tenants across the UK are under sustained financial pressure, with many in London spending over half their income on rent.

“With tenants staying in properties longer and the courts under pressure, the focus must be on securing reliable tenants from the outset.

“High-quality referencing, backed by rent and legal protection, gives landlords and agents the confidence to protect their income and safeguard tenancies.”

He added: “Legislation like the Renters’ Rights Bill is welcome, but it won’t fix affordability or supply challenges alone.”

Where rents fell

According to Canopy’s figures, average rents in the North West fell by £20 year-on-year, from £727 in 2024 to £707 in the third quarter of 2025.

Yorkshire and Humber saw an even greater reduction, with rents dropping by £24 from £648 to £624.

Cities including Hull, Doncaster and Blackburn now record rent-to-income ratios below 33%.

In contrast, London continues to be the most challenging region for affordability.

Tenants in the capital are spending nearly half of their income on rent, with seven boroughs now exceeding the 50% mark.

Enfield tops the list as the least affordable, where renters are spending around 56% of their earnings.