Affordability in the rental market is becoming a distant memory in England with property experts saying “many are in an impossible position”.
In 2024, private renters on an average 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, new ONS data shows.
This compares to 34.2% in England the year before in 2023, while Wales has actually improved from 27.2%.
In 2024, the most affordable region in England was the North East, with average rent prices of £641 per month, or 19.8% of private-renter household income. This was followed by the East Midlands, and Yorkshire and The Humber.
Affordability was worst in London, with rents of £1,957 per month, or 41.6% of private-renter household income.
Out of 316 local authority (LA) areas in England and Wales, 217 or 68.7%, had an average rent that was 30% or below, similar to the previous year.
At the top of the Local Authority affordability table was Hartlepool (15.9% of median income). The least affordable was Kensington and Chelsea (74.3% of median income), which has been the least affordable in all nine years.
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said renters are struggling from month-to-month.
She added: “We should all spare a thought for the UK’s tenants. Many are in an impossible position, trying to save for a deposit while at the same time facing sky-high rents.
“In London, the rents payable border on the obscene and people’s earnings evaporate each month. We need more houses, but they simply aren’t being built at the scale needed.”
Harry Goodliffe, Director at HTG Mortgages, said higher costs on landlords is being passed straight through to renters.
He continued: “It’s no shock rents are taking more income, demand’s through the roof and supply just isn’t there. Landlords are also being hit with higher costs, crazy regulations, and that’s being passed straight down the line to tenants.
“The real problem is years of underbuilding. Until that changes, renters are going to keep paying over the odds. If you’re stuck paying more than 30% of your income, review your options, negotiate, look slightly further afield, or consider short-term sharing. It’s not a fix, but every little helps.”
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, advised renters to communicate with their landlords.
He said: “With buy-to-let rates easing from recent highs, some landlords might pass on savings, but many are unlikely to. Long-term tenants who look after a property are highly valued, so landlords tend to prioritise stability over short-term rental gain.
“Keep in regular communication with your landlord and make their life as easy as possible to put yourself in the best position.”
Though Michelle Lawson, Director at Fareham-based Lawson Financial, said that a lot of landlords are struggling with extra costs.
She added: “Costs of being a landlord are increasing and have to be passed on. Landlords are not charities. This has all been created by constant battering of buy-to-let and the private rented sector by Government.
“This will only get worse with the Renters Reform as costs will spiral further which will further push rents up. The affordability situation is dire for some of the most vulnerable in society.”
Pete Mugleston, Mortgage Advisor & Managing Director at Derby-based onlinemortgageadvisor.co.uk, said: “We’re seeing a perfect storm driving rents higher, creating an affordability squeeze. Successive governments have missed house-building targets while overseeing a surge in net migration, which has pushed demand even further.
With landlords quitting the sector, stricter regulation, and competition from Airbnb, it’s no surprise affordability is worsening. There’s no easy fix for renters. With house prices also high, many are stuck in the middle.
For some, shared accommodation or relocating to more affordable areas, especially if remote work is an option, may be the only ways to ease the pressure.”
