The affordability of private rented housing in England deteriorated last year as tenants faced rising rents alongside falling incomes, according to official figures.
In the year ending March 2024, private renters on average spent 36.3% of their gross household income on rent, up from 33.1% the previous year and significantly higher than the 30% threshold typically regarded as affordable.
This shift was driven by a 7.9% increase in average monthly rents, reaching £1,232 — the fastest growth since comparable records began in 2015-16. At the same time, average household income among private renters dropped by 1.5% to £3,396.
“Affordability has tightened across the UK due to higher mortgage rates, increased living costs and stagnant wage growth in some areas,” said Megan Eighteen, president of the Association of Residential Letting Agents. She stressed that policymakers must tackle the root causes of rising rents, including financial and regulatory pressures that are pushing landlords out of the market.
The West Midlands recorded the sharpest increase in the share of income spent on rent, rising from 24.7% to 29.2%, followed by the South West and London. These two regions were the only areas where affordability fell below the 30% threshold.
In contrast, affordability slightly improved in the North East, North West, East Midlands, and South East, largely due to differences in wage growth despite overall rent rises.
According to Hannah Aldridge, senior analyst at the Resolution Foundation, a “post-pandemic correction” has fuelled rapid rent increases in recent years. The least affordable local areas continue to be concentrated in parts of central London, including Kensington and Chelsea, as well as in Bath, Bristol, and Trafford.
Ben Twomey, chief executive of Generation Rent, described current conditions as “back-breaking” for tenants and urged the government to give metro mayors stronger powers to curb rent hikes.
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