Falling rents fail to ease tenant affordability

Landlords face tighter tenant affordability despite a fall in average rents, with tenants spending a greater share of their income on rent in October.

The HomeLet Rental Index puts that share at 32.7%, up from 32.1% in September.

Average UK rent fell by 0.9% over the month to £1,375.

However, tenants agreeing new tenancies still paid 2.2% more than a year earlier.

Tenant affordability and referencing

Carrie Alliston, the head of partnerships at HomeLet and Let Alliance, said: “UK renters are spending almost a third of their income on rent – and that proportion is still rising.

“With affordability tightening for tenants, it’s more important than ever to protect your rental income.”

She added: “That starts with a thorough referencing check that gives you a true picture of what a tenant can afford to help make a more informed decision.

“But even a tenant who can comfortably afford the rent today could face a change in circumstances.”

Regional rent affordability

Northern Ireland recorded the highest proportion of income spent on rent at 39.4%, although this was down from 39.7% in September.

Its average monthly rent was £1,010, compared with £2,260 in Greater London.

London tenants spent 38.9% of their income on rent, up from 37.9% the previous month.

Outside Greater London, the average rent fell to £1,164, but the proportion of income needed to cover it increased to 31.1% from 30.5%.

Where rents fell

The South East recorded the largest monthly fall in average rent, down 2.7% to £1,432, HomeLet says.

Scotland followed with a 2.6% monthly decline, although rents there remained 4.8% higher than a year earlier, the strongest annual increase of any region.

The East Midlands was the only region where average rent was lower than in October 2025, falling 0.6% to £925.