One-third of tenant income in the UK goes on rent
- Lomond’s Summer 2026 Quarterly Insights report reveals tenants now spend an average of 32.7% of their yearly income on rent
- UK average rents rise to £1,369pcm, increasing by +4.3% in the same period last year
- Average rent in London reaches £2,418pcm, 76% higher than the UK average
- The average age of renters across the UK is now 31.5
Lomond, the UK’s leading network of lettings and sales agents, has today released its latest Quarterly Insights Report. The Summer 2026 iteration of the report reveals tenants in the UK are spending nearly a third of their income on rent, reinforcing the importance of value, location, and quality of rental homes across the UK.
The report also finds the average rent across the UK now sits at £1,369 per calendar month (pcm), increasing by +4.3% from the same period last year. London maintains its command of a significant premium, with average rents now standing at £2418pcm, a staggering 76% higher than the UK average. Elephant & Castle remains one of the Capital’s strongest-performing lettings markets, with new-build developments achieving record rents amid sustained demand from overseas renters, students and young professionals.
According to Goodlord and LomondIQ data, the average UK renter is 31.5 years old, with Scotland standing out as home to the youngest renters in the UK, with an average age of just 25 due to the large student population.
The lettings market is seeing demand evolve as expectations rise. As the Renters’ Rights Act (RRA) regulation continues to bed in, and periodic tenancies become the norm, the strategic landlord is shifting from agreeing a tenant quickly to securing the right tenant for the long term.
The data from Goodlord and LomondIQ also reveals that London has the largest volume of tenancies created in the last year. The number of tenancies agreed in Kent has increased a startling 121%, with family housing continuing to lead demand. Two- and three-bedroom properties also remain appealing to renters across the region.
Kent has also seen its average rents increase +5% compared to the same period last year, according to the report from Lomond. High-speed rail links continue to draw a smaller but persistent flow of commuters relocating for easier access to London, alongside keen interest in new build stock.
The North West and Yorkshire regions have also seen average monthly rents increase by +5% – to £1215 and £1283 respectively. In the North West, rural and semi-rural towns situated between Liverpool and Manchester are experiencing increased demand, as tenants look to balance affordability, lifestyle and convenient commuting. In a ‘Burnham world’, there’s potential for Manchester’s position as an economic centre, rather than an alternative to London, to be accelerated.
Lettings in Yorkshire remained solid this quarter, with more tenants moving into properties compared with the same period last year. The report finds that the most sought-after properties in Yorkshire include two and three-bedroom terraces and semi-detached homes.
John Ennis, Chief Revenue Officer, Lomond, said:
“Our insights report shows that the rental market remains resilient, but affordability continues to be a key consideration for many households. With tenants now spending almost a third of their annual income on rent, the importance of delivering well-managed, high-quality homes in the right locations has never been greater.
“What we’re seeing across the UK is not a slowdown in demand, but a shift in renter priorities, with tenants increasingly focused on long-term value. At the same time, landlords are adapting to a changing regulatory landscape, with the Renters’ Rights Act encouraging a greater emphasis on sustainable, long-term tenancies. Success in this market is no longer simply about filling a property quickly, but matching the right tenant with the right home and creating tenancies that work for everyone involved.
“What remains consistent is a continued appeal for high-quality rental accommodation in locations that offer a compelling balance of affordability, connectivity and lifestyle.”
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Breaking Property News 26/8/26
