Rent prices skyrocket as majority of UK becomes unaffordable for renters

Rent prices have soared within the last five years as renters struggle to find an affordable place to live, according to a new survey.

Research by Go.Compare Home Insurance reveals that 65% of Britain has average rental costs above what is considered affordable for a typical single tenant.

According to Go.Compare, the average monthly rental price in 2024 is £1,286 – up by 26% from £1,019 in just five years.

The comparison website says single tenants need an average salary of more than £50,000 to comfortably afford rental payments.

London is most unaffordable location for renters

London continues to dominate the list of the most unaffordable locations for renters.

Kensington and Chelsea lead the list, where single renters need an impressive annual income of £136,720 to afford the typical rent of £41,016 per year. Westminster is a close second, requiring renters to earn £123,960 annually to manage an average monthly rent of £3,099.

In contrast, the research also identifies the most affordable areas for renters, where costs are significantly lower.

Dumfries and Galloway are crowned the most affordable, requiring a single salary of just £19,320 to pay an average monthly rent of £483. Following closely is Hartlepool, where a salary of £21,360 covers the average rent of £534 per month.

Renters struggling to keep with rising costs

Nathan Blackler, home insurance expert at Go.Compare, said: “The huge differences in rental prices across Britain really highlight the urgent need for affordable housing solutions.

“While some areas are still within reach for renters, many renters are struggling to keep up with rising costs that far exceed their wages. This isn’t just a problem for individuals, it impacts local economies and communities as a whole.

“When tenants are forced to choose between paying rent and other essentials, the ripple effect can be felt throughout neighbourhoods, leading to increased financial stress and instability.

“As a result, renters might look to cut costs in other important areas like contents insurance, thinking they can’t afford it. However, this could sadly leave them vulnerable to unexpected events.”

Beyond London, areas like Elmbridge and Brighton and Hove are also home to steep rental costs, requiring around £70,000 a year to maintain affordability.