Private renters in England spend 33% of income on rent: ONS
Private renters in England are allocating a larger proportion of their household income to rent compared to those in Wales and Northern Ireland, according to new figures from the Office for National Statistics (ONS).
The ONS reported that in 2024, households renting privately on a median income in England spent over a third, or 36.3%, of their earnings on an average-priced rental property. This contrasts with 25.9% in Wales and 25.3% in Northern Ireland.
The data highlights ongoing affordability challenges, particularly in England, where the share of income required for rent has consistently exceeded the 30% threshold since 2016.
While household incomes for private renters have generally outpaced rent increases in all three nations since 2016, the trend has shifted since 2021. In England, incomes have continued to rise faster than rents, but in Wales and Northern Ireland, rent growth has overtaken income gains.
London remains the least affordable region, with renters spending 41.6% of median income on rent in 2024. This figure keeps England’s overall affordability ratio above the 30% threshold, despite most English regions falling below it.
The ONS also noted that in 2024, nearly 69% of local authorities in England and Wales had average rents below the affordability threshold, a proportion similar to the previous year. However, the least affordable local authorities were concentrated in London, with other high-cost areas including Bristol, Bath and North East Somerset, Brighton, Trafford, and commuter regions such as Sevenoaks and Watford.
For mortgage brokers, these affordability pressures may prompt more renters to explore homeownership, increasing demand for advice. At the same time, higher living costs and stagnant wages could make it harder for clients to save for deposits or qualify for loans, highlighting the importance of brokers’ guidance on affordability and financial planning.
“Affordability has tightened throughout the UK due to several factors, including rising mortgage rates, increased living costs, and stagnant wage growth in some regions,” said Megan Eighteen (pictured left), president of industry body ARLA Propertymark. “With the average rental price now sitting at £1,344 across the UK, this would mean a renter would need to have a salary of around £40,320 just to qualify to rent a home at this price.
“It’s vital that we address the underlying causes of rising rents directly. Ongoing regulatory and financial pressures on landlords are driving many out of the market, especially when there is such a pressing need for housing, which is a key factor in the significant rent increases we’re seeing.”
Richard Donnell (pictured right), executive director at Zoopla, meanwhile, noted that while the rental supply-demand imbalance remains, growing affordability pressures for renters, especially across UK cities, is limiting the pace at which rents are rising for new lets.
“Our latest rental index shows rents are increasing at 2.7%, the lowest rate for 4 years - since July 2021,” he said. “Lower rent inflation will be welcome news for renters but only by growing the supply of rented homes can the pressures on Britains renters be truly eased.”
According to Eighteen, investment from reliable and professional landlords is essential, as the private rental sector is instrumental in providing housing for the nation. “This can only be achieved with the backing and understanding of all levels of government across the UK,” she stressed.
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