New research from LandlordBuyer highlights mounting affordability pressures, with renters allocating a record share of their earnings to rent.
Drawing on official data, the analysis shows that rental costs are rising faster than incomes, leaving households with less financial flexibility.
- The national average private rent now stands at £1,360 per month.
- Rents have increased by 5.0% in the past 12 months.
- Renters are paying 36.3% of their income towards housing.
- This has risen from 34.2% a year earlier.
- Spending above 30% of income on rent is generally considered unaffordable.
- In areas of high demand, tenants are paying well above the national average.
The findings indicate that housing costs are taking a larger share of income, limiting spending on other essentials and reducing the ability to save.
LandlordBuyer points to ongoing supply shortages, rising landlord expenses and interest rate pressures as key factors behind continued rental growth.
The company adds that regulatory and financial challenges are prompting some landlords to leave the sector, which is further reducing available housing and driving competition.
It describes the situation as a long-term structural change, with affordability becoming a defining issue for the private rental market.
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 boosting housing supply and stabilising the private rental sector will be necessary to improve affordability, while continuing to provide sales solutions for landlords with tenanted properties.