"Legislation like the Renters’ Rights Bill is welcome, but it won’t fix affordability or supply challenges alone."
- Gary Barker - Canopy
Rents across parts of the UK are beginning to ease, but overall affordability pressures remain severe, according to the latest Rental Affordability Index from tenant and landlord services provider Canopy.
Based on more than 112,000 data points, the index shows that the average UK tenant spends 41% of their take-home salary on rent, exceeding the level considered financially sustainable. Although this figure has changed little since Q2, regional shifts suggest that some tenants are beginning to see small signs of improvement.
The Renters’ Rights Bill, due to return to the House of Lords on 14 October, is expected to introduce significant changes to tenant protections. The proposed legislation includes tougher safeguards against unfair evictions and higher standards for rental accommodation. If approved, it could reshape the sector, offering tenants greater transparency and security in a market that has historically favoured landlords.
Regional data highlights areas where affordability is improving. The North West and Yorkshire & Humber have seen rents decline alongside steady local economic performance.
In the North West, the average monthly rent fell by £20, from £727 in 2024 to £707 in Q3 2025.
In Yorkshire & Humber, average rent dropped by £24, from £648 to £624.
Cities including Hull, Doncaster and Blackburn now report rent-to-income ratios below 33%, making them comparatively affordable locations for renters seeking to save or plan for homeownership.
London remains the least affordable region, with renters spending nearly half their income on housing costs. Seven boroughs now exceed the 50% threshold, with Enfield ranking as the most expensive, where tenants spend 56% of their income on rent.
“Our Q3 Rental Affordability Index shows tenants across the UK are under sustained financial pressure, with many in London spending over half their income on rent," explained Gary Barker, CEO at Canopy. "With tenants staying in properties longer and the courts under pressure, the focus must be on securing reliable tenants from the outset. High-quality referencing, backed by Rent & Legal Protection, gives landlords and agents the confidence to protect their income and safeguard tenancies.”
He added, “Legislation like the Renters’ Rights Bill is welcome, but it won’t fix affordability or supply challenges alone. Until more homes are built, robust referencing and financial protection remain the most effective way to support both landlords and renters. At Canopy, we’re committed to driving this shift, delivering smarter, data-led solutions that strengthen trust and resilience across the rental market.”
