England’s renters face growing affordability challenges – ONS

Renters in England faced growing budget pressures last year, with tenants on a median household income having to spend 36.3% of their earnings on an average rent of £1,232, the Office for National Statistics reveals.

That’s much higher than the 25.9% tenants who spent in Wales with rent at £702 and 25.3% in Northern Ireland where the average rent is £751.

Since 2016, the proportion of income spent on rent has varied across these regions with England’s tenants consistently exceeding the 30% affordability threshold.

The difference is driven largely by steep costs in London, where renters allocated 41.6% of their income to housing in 2024.

In contrast, Wales saw a gradual decline in affordability in line with tenants in Northern Ireland.

Incomes rise faster than rents

The ONS says that household incomes for private renters have generally risen faster than rents since 2016 across all three nations.

However, a shift occurred after 2021, when rents began to climb more sharply.

In England, incomes continued to outpace rent increases, offering some relief to tenants.

In Wales and Northern Ireland, however, rents have grown faster than incomes, squeezing household budgets.

London’s home to unaffordable rents

Regionally, two-thirds of Local Authorities (68.7%, or 217) in England and Wales reported average rents below the affordability threshold last year.

That figure is consistent with the previous year.

London remained the epicentre of unaffordable rents, with all the least affordable Local Authorities located in the capital.

Outside London, Bristol, Bath and North East Somerset, Brighton and Trafford, as well as commuter-heavy areas such as Sevenoaks and Watford, also faced affordability challenges.

Reaction from the property sector

Megan Eighteen, the president of ARLA Propertymark, said: “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.”

Richard Donnell, the executive director at Zoopla, said: “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 four 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 Britain’s renters be truly eased.”