Rent Crisis: Britons Forced to Spend Over a Third of Salary on Housing

The UK's rental crisis has deepened, with new figures from the Office for National Statistics (ONS) revealing that tenants in England now spend 36.3% of their income on rent —rising to 41.6% in London, where the average monthly rent is £1,957.

The ONS data, covering the financial year ending 2024, show that affordability is worsening across the country, with London at the epicentre of spiralling costs.

Which Were The Priciest Areas Across the UK?

All ten of the UK's least affordable council areas were in London, led by Kensington and Chelsea, where median earners spent an astonishing 74.3% of gross income on rent. Other boroughs with heavy rent burdens included:

Westminster (55.8%)
Wandsworth (54%)
Camden (51.7%)
Hammersmith and Fulham (51.3%)
Haringey (48.3%)
Lambeth (47.1%)
Merton (46.8%)
Islington (45.5%)
Richmond (45.3%)

Outside the capital, affordability pressures were also severe in Bristol (44.6%), Bath and North East Somerset (42.7%), Brighton (42.7%), and Trafford (41.3%). Commuter hotspots such as Sevenoaks (42%) and Watford (41%) also made the list.

How Affordability Measured Up Against Each Other

In the financial year ending 2024, private rental affordability varied significantly across the UK. In England, tenants spent an average of 36.3% of their household income on rent, with monthly payments of £1,232 against an income of £3,396, placing them above the affordability threshold.

By contrast, renters in Wales and Northern Ireland remained below this benchmark, with households in Wales allocating 25.9% of their income to rent (£702 compared with £2,713) and those in Northern Ireland spending 25.3% (£751 compared with £2,974).

According to the ONS, all 32 London boroughs exceeded the 30% affordability benchmark in eight of the nine financial years from 2016 to 2024.

'No Sign of Easing'

According to Tom Darling, director of the Renters' Reform Coalition, the latest figures from ONS highlight that high rents remain the most pressing challenge for tenants, and the problem shows 'no sign of easing.'

'Though the government's renters' rights bill will introduce crucial improvements to security and standards, it won't put a lid on the affordability crisis. While millions are forced to spend less on essentials like groceries to afford their rent, the government will have a hard time making the case at the next election that they've delivered for renters,' he explained.

Darling added, 'The government should establish a national rental affordability commission to look at ways to bring rents down relative to incomes – including investigating different types of rent regulation.'

Renters Subjected to Intense Financial Pressure

Meanwhile, Sarah Coles, head of personal finance at Hargreaves Lansdown, noted that renters have been under intense financial pressure, a situation that appears to have worsened.

'Renters faced a horrible squeeze on their incomes, and there's every sign it has got worse since. Landlords are continuing to sell up – concerned about higher costs from more regulation and more tax,' she said.

Sarah added, 'It means more tenants chasing dwindling numbers of properties, so rents are continuing to rise. At the same time, although wages have risen impressively, they have been consistently outpaced by private rental increases.'

Beyond London: A Nationwide Problem

While London remains the least affordable region, commuter towns and regional cities are now experiencing similar pressures.

With rents rising faster than wages, experts warn that without significant investment in affordable housing and stronger regulation, millions will remain locked in financial insecurity.

Unless meaningful steps are taken to expand affordable housing, regulate rents, and reform support systems, millions of renters will remain locked in financial strain, with housing insecurity set to shape the political agenda ahead.

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