ONS report on private rental affordability
Private renters on a median household income could expect to spend 36.3% of their income on an average-priced rented home in England, compared with 25.9% in Wales and 25.3% in Northen Ireland in 2024.
Private rental affordability has fluctuated since 2016 but remained above the 30% affordability threshold in England, while it moved below the threshold over time in Wales to reach similar levels to Northern Ireland.
Private rental households’ incomes have increased faster than rents in all three countries since 2016; but since 2021, as rents started increasing more rapidly, different patterns emerged with incomes increasing faster than rents in England but increasing slower than rents in Wales and Northern Ireland.
London’s private rental affordability ratio was 41.6% in 2024, keeping England’s affordability ratio above the 30% affordability threshold, despite most English regions being below the threshold.
In England and Wales, two-thirds of Local Authorities (LAs) (68.7%, or 217) had an average rent that was below the affordability threshold in 2024, similar to the previous year.
The LAs with the least “affordable” rents were all in London; the least affordable LAs outside London were urban centres such as Bristol, Bath and North East Somerset, Brighton and Trafford, or areas with high numbers of commuters to London (Sevenoaks and Watford).
Megan Eighteen, President of ARLA Propertymark (Association of Residential Letting Agents), comments:
“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.”
You May Also Enjoy
Yarmouth named the UK’s most prestigious marina
Whitby crowned most exclusive coastal location
ONS report on private rental affordability
End of August Will See an 84% Increase in UK House Moves
Surveying capacity is being outpaced by compliance demand
