Having analysed Uk rental affordability on a quarterly basis in 2024 with our quarter three index, quarter two index, and the inaugural quarter one index, we decided to have a deep dive into the year as a whole.
This end of year index analyses data from over 60,000 individual renters, covering the entire year of 2024.
The dataset measures the average take-home salary of employed tenants against their share of rental costs to create a rent-to-income ratio – put simply, what percentage of their salary is spent on rent.
Amazingly, in some areas of the UK tenants are spending over half of their take-home pay on rental costs.
One in 25 tenants (4%) are spending over 80% of their salary on rents.
Data shows that tenants are stretching beyond the 40% mark
At a national level, UK tenants spent an average of 36% of their net salary on rent this year, with an average annual rental spend of £9,900.
This was calculated by dividing the national average net income, which is roughly £27,710 per year, by the national annual rent.
The index findings revealed that around one in ten UK tenants (10%) is having to contribute their savings to their rental payments.
Many areas of the country are seeing the average tenant go beyond the 40% mark and up towards spending half of their money on rent, with London taking the lead for least affordable region.
Tenants in London are spending 44.6% of their take-home salary on rent, with the South East taking second place with a 44.1% rent-to-income ratio.
The Isle of Man emerged as the most affordable region, where renters spent just 31.1% of their income on rent.
Tenants in Wales earned the lowest average income in 2024 (£21,706.09 after tax), adding to affordability challenges, despite rents being lower than the UK average.
Full regional breakdown
- London: 44.6%
- South East: 44.1%
- South West: 41.2%
- East of England: 40.5%
- Channel Islands: 39.9%
- Wales: 38.4%
- West Midlands: 37.8%
- East Midlands: 37.4%
- Scotland: 36.7%
- North West: 36.6%
- Yorkshire and The Humber: 35.2%
- North East: 33.6%
- Northern Ireland: 33.0%
- Isle of Man: 31.1%
London analysis
We analysed the average rental costs and salary data for tenants in all of London’s 32 boroughs.
The average London tenant spent £14,248.68 on rent in 2024. Across all boroughs, renters spent at least 38.9% of their salary on rent, with many areas exceeding the critical 40% threshold.
In three London boroughs, tenants spent over half of their 2024 earnings on rent, stretching well beyond the recommended limit of affordability.
Enfield (53.1%), Barnet (51.9%), and Haringey (51.5%) topped the list as the least affordable boroughs, where tenants sent most of their take-home pay to their landlord.
The lowest rent-to-income ratio was recorded in Newham, but even here, renters spent 38.9% of their salary on rent, still above the national average.
South of England struggles with affordable rent
Cities are typically more expensive than smaller towns and areas, and the data reflects this.
The south of England dominates the list of the least affordable cities, with every single city in the top ten located in the South of England. Renters are spending a significantly higher proportion of their salary on rent compared to the rest of the UK.
Bournemouth is the least affordable city in the UK, with tenants spending 47.3% of their income on rent.
Although London is the third most unaffordable, unsurprisingly it has the highest rent costs than any other city, reaching an average monthly rent share of £1,187.39 per tenant.
Least affordable cities in the UK to rent (highest rent to income ratio):
- Bournemouth: 47.3%
- Oxford: 46.1%
- London: 44.6%
- Brighton: 45.8%
- Canterbury: 45.2%
- Salisbury: 44.6%
- Bath: 43.8%
- Portsmouth: 43.4%
- St Albans: 42.6%
- Colchester: 42.3%
Most affordable cities in the UK to rent (highest rent to income ratio):
In contrast, tenants in northern cities and Northern Ireland enjoy more manageable rent-to-income ratios.
Belfast emerged as the most affordable city, with renters spending just 33% of their income on rent.
Stoke-on-Trent and Carlisle also offered affordability, with tenants in both cities spending an average of 33.2% of their salary on rent.
- Belfast: 33.0%
- Stoke-on-Trent 33.2%
- Carlisle: 33.2%
- Newcastle upon Tyne: 33.5%
- Dundee: 33.8%
- Sunderland: 33.8%
- Hull: 34.0%
- Wakefield: 34.2%
- Aberdeen: 34.2%
- Doncaster: 34.2%
Top ten least affordable local authority areas to rent in
Our index also analysed the local authority areas and highlights the extreme examples of both unaffordable and affordable renting across the UK.
Adur (Sussex) stands out as the most unaffordable local authority area in the UK. Tenants here spent a staggering 72.6% of their salary on rent in 2024.
This is largely due to the low average salary in the area, which is just £21,482 per year with average rental costs of £927. The salary here is 37% less than the average salary in Barnet, which was the sixth least affordable local authority, with rental costs averaging £1,152.
Besides Barnet, two more of the least affordable areas were in London boroughs; Enfield and Haringey.
Least affordable local authority areas in the UK to rent (highest rent to income ratio):
Most affordable local authority areas in the UK to rent (lowest rent to income ratio):
In a sharp contrast, Mid and East Antrim (Northern Ireland) was the most affordable local authority area in the UK in 2024. Here, renters spent just 22.9% of their income on rent, far below the national average.
Tenants in Mid and East Antrim also enjoyed some of the lowest rental costs in the UK, spending just £5,919.96 annually. This is a stark contrast to London, where renters paid almost £15,000 per year.
Chris Hutchinson, CEO at Canopy, commented: “2024 has been a year in which rental affordability has remained difficult for most tenants.
On average, renters are now spending 35.7% of their take-home salary on rental payments. This figure alone paints a sobering picture of the financial strain faced by tenants, but the situation becomes even more severe in certain areas.
“In parts of London and other high-demand regions, renters are shelling out over 50% of their income just to keep a roof over their heads.
This disparity highlights the widening gap between rental prices and income levels, particularly in popular cities where demand vastly outstrips supply. The shortage of affordable rental properties, coupled with rising living costs, leaves many renters with little left to save or spend on other necessities. For those on lower incomes, this creates a precarious situation, with many households one unexpected expense away from financial crisis.
Although some regions have seen modest efforts to expand the supply of rental properties through new builds, it has done little to ease the pressure. Renters are increasingly prioritising affordability over location, driving migration to less expensive areas.
Despite these challenges, renting remains the only viable option for many who are priced out of homeownership.”
Read more on how to make the most of your finances
Rental affordability is an ever-growing challenge for many, and we’re here to help both tenants and landlords tackle this and other issues that can arise in the competitive and evolving UK rental property market.
Our RentPassport provides a digital footprint that can take the hassle out of the process for renters, making tenant referencing for letting agents and landlords.
Next time you move all you need to do is show letting agents and landlords your RentPassport which shows your previous rent history and puts their mind at ease to give you the green light without worrying about affordability.
Check out our resources page for more information and advice on all things rent.
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