Renters squeezed as they spend a third of their income on rent

The average UK tenant spent 35.7% of their take-home pay on rent last year which underscores the growing financial strain facing many households, one firm says.

The research from tenant and landlord services provider Canopy is based on data from more than 60,000 renters.

It found that one in five renters (20%) spent more than half of their income on rent, while 11% shelled out more than 60%.

London emerged as the most unaffordable region, with an average of 44.6% of renters’ salaries going towards rent.

However, in some boroughs, tenants are paying proportionately more – in Enfield (53.1%), Barnet (51.9%) and Haringey (51.5%).

‘Rental affordability has remained difficult’

The firm’s chief executive, Chris Hutchinson, said: “2024 has been a year in which rental affordability has remained difficult for most tenants.

“On average, renters are now spending 35.7% of their take-home salary on rental payments.

“This figure alone paints a sobering picture of the financial strain faced by tenants, but the situation becomes even more severe in certain areas.”

He added: “In parts of London and other high-demand regions, renters are shelling out over 50% of their income just to keep a roof over their heads.”

The cost of renting

Canopy’s research also shows that the cost of renting extends beyond the capital with Bournemouth being the least affordable city outside of London.

There, renters spend 47.3% of their income to housing costs.

Oxford follows closely behind at 46.1%.

Belfast emerges as the most affordable city, with tenants spending 33% of their income on rent.

Also, Mid and East Antrim in Northern Ireland is the most affordable local authority area, with renters spending 22.9% of their income on housing.

‘Affordable rental properties’

Mr Hutchinson says that the disparity between rents and income levels is acute in popular cities where demand outstrips supply.

He said: “The shortage of affordable rental properties, coupled with rising living costs, leaves many renters with little left to save or spend on other necessities.

“For those on lower incomes, this creates a precarious situation, with many households one unexpected expense away from financial crisis.”

He adds: “Although some regions have seen modest efforts to expand the supply of rental properties through new builds, it has done little to ease the pressure.

“Renters are increasingly prioritising affordability over location, driving migration to less expensive areas.”

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