Tenants spend more than £10,000 on rent as affordability hits

The average UK renter paid £10,580 in rent during 2025, swallowing 41% of their take home pay, research reveals.

According to Canopy’s Rental Affordability Index, that share has climbed sharply from 36% a year earlier, underlining the growing financial strain facing tenants.

Individual rent contributions rose by £684, a 6.9% increase, while net earnings edged up far more slowly from £27,710 to £28,810.

The index draws on data from more than 119,000 working renters, comparing post tax income against personal rental outgoings to calculate rent to income ratios.

Spending 40% of net salary is widely viewed as the upper affordability ceiling, placing many households at the brink of what is considered manageable.

Rents are challenging

The firm’s customer operations manager, Charlotte Benson, said: “Rental affordability has remained a challenge for most tenants, with our data highlighting how the percentage of take-home salary being spent on rent has increased across the nation.

“Tenants are being stretched to the outer limits of rental affordability as financial strain continues, and in certain areas the situation is becoming even more severe.”

She added: “Unfortunately, with high demand, limited supply and stagnant wage growth, rental affordability has not improved in the past year, particularly in the southern and highly urban areas.”

London is least affordable

The index shows a stark regional difference with London again ranked as the least affordable area, where tenants spent 48% of their income on housing.

That’s despite commanding the highest average earnings at £37,600.

The South East followed at 44%, with the East of England at 42% and the South West at 41%.

By contrast, the North East posted the lowest ratio at 34%, with Yorkshire and The Humber close behind at 35%.

Canopy says that across every region, affordability either deteriorated or stagnated over the year.

Rent in London’s boroughs

In the capital, the average annual rent reached £15,684 in 2025, up 10% from £14,248 the previous year.

Every London borough breached the 40% affordability line, while 12 districts saw renters allocating more than half their earnings to rent.

Enfield, Barking and Dagenham, recorded ratios of 55%, with Brent at 54%.

Even Merton, the most affordable borough, stood at 45%, still well above the national figure.

The best areas for affordability

Outside London, southern cities continued to dominate the least affordable rankings.

Brighton displaced Bournemouth as the costliest location, with tenants committing 47% of income to rent.

Edinburgh and Manchester have also now entered the top 10 least affordable cities.

Durham, Doncaster and Hull emerged as the most affordable urban areas, each posting rent to income ratios of 32%.