Private renters on a median household income are spending around 36.3% of their income on an average-priced rented home in England, compared with 25.9% in Wales and 25.3% in Northern Ireland in 2024, according to the latest ONS figures.
The figure for England is up from 33.1% in the previous year.
Private rental affordability has fluctuated since 2016 but remained above the 30% affordability threshold in England, while it moved below the threshold over time in Wales to reach similar levels to Northern Ireland.
Private rental households’ incomes have increased faster than rents in all three countries since 2016; but since 2021, as rents started increasing more rapidly, different patterns emerged with incomes increasing faster than rents in England but increasing slower than rents in Wales and Northern Ireland.
London's private rental affordability ratio was 41.6% in 2024, keeping England's affordability ratio above the 30% affordability threshold, despite most English regions being below the threshold.
In England and Wales, two-thirds of local authorities (LAs) (68.7%, or 217) had an average rent that was below the affordability threshold in 2024, similar to the previous year.
The affordability ratio for England is heavily influenced by London, with the highest number of private renting households and the most expensive rents.
The LAs with the least "affordable" rents were all in London, while the least affordable LAs outside London were urban centres such as Bristol, Bath and North East Somerset, Brighton and Trafford, or areas with high numbers of commuters to London (Sevenoaks and Watford).
Data shows that average rents have been between 38.5% and 57.0% of private-rented household incomes in London since 2016. In other regions they have remained between 19% and 36%.
In financial year ending 2024, the most affordable region in England was the North East, with average rent prices of £641 per month, or 19.8% of private-renter household income. This was followed by the East Midlands, and Yorkshire and The Humber.
London was the least affordable, with rents of £1,957 per month, or 41.6% of private-renter household income.
Richard Donnell, executive director at Zoopla, commented: "The affordability of renting has worsened in 2024 as rapid growth in rents has outpaced the rise increase in household incomes. Strong demand for rented homes on higher migration for work and study together with higher mortgage rates has boosted rental demand while the number of homes for rent has remained static for a decade as landlords slow investment.
"The rental supply/demand imbalance remains but growing affordability pressures for renters, especially across UK cities, is limiting the pace at which rents are rising for new lets. Zoopla's latest rental index shows rents are increasing at 2.7%, the lowest rate for four years - since July 2021.
"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."
Megan Eighteen, president of ARLA Propertymark, added: “Affordability has tightened throughout the UK due to several factors, including rising mortgage rates, increased living costs, and stagnant wage growth in some regions.
“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.
“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.”
