"Landlords shouldn’t assume affordability simply because a tenant can pay a deposit. Previous Reposit research shows that one in five renters borrow money as repayable debt, to cover this cost"
- Ben Grech - Reposit
Around one third of tenants are spending 50% or more of their take-home pay on rent, according to data from Reposit.
The survey, conducted by the deposit alternative provider among 1,000 renters, found that 14% pay 50-60% of their net income on rent, 11% pay 60-70%, and 6% spend more than 70%. Another 22% dedicate between 40% and 50% of their take-home pay to housing costs.
Overall, the poll revealed that 31% of renters allocate half or more of their net income to rent, which roughly equates to 40% of gross earnings.
Analysts, NGOs, and financial advisers often reference the ‘30% rule’, a long-standing guideline suggesting households should spend no more than around 30% of gross (pre-tax) income on rent. Spending beyond this threshold can leave tenants with limited funds for essentials such as food, transport, and utilities. The Reposit survey suggests that many renters are already exceeding these recommended affordability limits.
To provide context, Reposit data shows the average UK rent is £1,196 per month, while the Office for National Statistics (ONS) reports average weekly earnings at £733, or £38,116 annually as gross pay. Based on these figures, tenants are spending approximately 38% of their gross monthly income on rent, significantly above the 30% benchmark.
The survey also looked at rent relative to household income. For tenants paying up to £1,000 per month, 78% were spending 30% or more of their take-home pay. At rents of £1,500 or higher, that figure rises to 84%.
“It’s still a really tough time for renters. With so many already spending half of their take-home pay on rent, the traditional upfront deposit only adds to the pressure," explained Ben Grech, CEO of Reposit (pictured). “With average cash deposits now around £1,380, anything that helps ease this burden or give tenants more financial breathing room can make renting more manageable."
“Landlords shouldn’t assume affordability simply because a tenant can pay a deposit. Previous Reposit research shows that one in five renters borrow money as repayable debt, to cover this cost. A tenant’s true capacity to pay rent in full and on time is best assessed through high-quality referencing and affordability checks carried out by specialist providers."
“By removing the need for large upfront deposits, landlords can attract a wider pool of renters and fill properties faster, helping to reduce costly void periods. At the same time, Reposit offers up to eight weeks of protection, exceeding the traditional five-week cap, and provides peace of mind as a fully FCA-regulated and insured product.”
