Fresh analysis from LandlordBuyer indicates that tenants across the UK are dedicating an unprecedented proportion of their income to rent, signalling a worsening affordability position.
Using the latest official data, the study shows rental growth continuing to exceed wage increases, placing additional strain on household finances and altering the dynamics of the private rented sector.
- The typical monthly rent in the private sector has reached £1,360 nationwide.
- Average rents have risen by 5.0% over the past year.
- Renters are allocating 36.3% of their earnings to housing.
- This compares with 34.2% twelve months earlier.
- Spending above 30% of income on rent is widely regarded as unaffordable.
- In high-demand regions, the proportion is considerably higher.
The figures show that housing costs are absorbing a larger share of income, reducing disposable funds available for everyday expenses and savings.
LandlordBuyer attributes the trend to a continued mismatch between supply and demand, higher borrowing costs for landlords and ongoing regulatory changes, all of which are contributing to upward pressure on rents.
The company notes that some landlords are leaving the market due to rising costs, which is further restricting supply and intensifying competition for available properties.
LandlordBuyer says the situation points to a structural change in the rental market, with affordability now a central issue for policymakers and investors.
Jason Harris-Cohen, Managing Director of LandlordBuyer, said: “The data clearly shows that rental affordability in the UK has reached a critical point. Tenants are now spending a record share of their income just to keep a roof over their heads, and this trend is not sustainable.
“Rising costs, ongoing regulatory change, and increasing financial pressure are pushing many landlords to reconsider their long-term position. As supply tightens, the result is higher rents and reduced choice for tenants.
“We need a balanced approach that supports responsible landlords while improving access to affordable housing. Without meaningful action, the gap between wages and housing costs will continue to widen, and more households will face real financial hardship.”
LandlordBuyer states that increasing housing supply and creating greater market stability will be key to improving affordability, while the firm continues to assist landlords wishing to sell tenanted properties without displacing occupants.
