"Wage growth is still struggling to keep pace with rental inflation, leaving tenants with less disposable income for essential living costs or saving for the future. These regional disparities highlight the need for targeted solutions to support renters and improve affordability nationwide"
- Matt Hutchinson - SpareRoom
Tenants across the UK are spending an increasing share of their take-home pay on rent, according to new figures from Canopy. The firm’s latest Rental Affordability Index shows that renters are now allocating an average of 41% of their net income to cover housing costs, placing many at the upper limit of what is generally considered financially sustainable.
Based on over 103,000 data points, the index reveals a year-on-year rise of 5% in the rent-to-income ratio. In the first quarter of 2025, the figure stood at 40%. Now, with the average monthly rent reaching £854, up £35 over the past 12 months, affordability is becoming a growing concern for tenants across the country.
“Spending just over 40% of their take-home pay on rent, it’s clear that many are living at the edge of financial comfort,” said Chris Hutchinson, CEO at Canopy. “Our latest figures for April to June 2025 reveal the ongoing rental affordability crisis across the UK.”
The Canopy index compares employed tenants’ take-home pay with the amount they spend on rent, resulting in a rent-to-income ratio used to evaluate affordability. A 40% ratio is typically viewed as the threshold for financial strain.
London remains the least affordable rental market. Tenants in the capital now spend 47.7% of their income on rent. In seven London boroughs, average rent costs exceed 50% of take-home pay. This is up from the five boroughs in the previous quarter.
Enfield is the least affordable borough, with tenants spending 56% of their salary on rent. Other boroughs above the 50% mark include Haringey (53.2%), Brent (52.3%), Barking and Dagenham (51.4%), Redbridge (51.3%), Barnet (50.1%), and Havering (50%).
Most unaffordable cities – top ten
| City | Avg Income (£) | Avg Rent (£) | Rent to Income % | |
| 1 | London | 36,513.93 | 1,260.19 | 47.7% |
| 2 | Brighton | 26,913.14 | 899.72 | 45.9% |
| 3 | Oxford | 28,720.38 | 917.71 | 45.4% |
| 4 | Bournemouth | 24,585.75 | 814.68 | 45% |
| 5 | Canterbury | 23,144.16 | 772.11 | 44.5% |
| 6 | Portsmouth | 23,841.45 | 766.19 | 43.9% |
| 7 | St Albans | 35,720.14 | 1,112.91 | 43.6% |
| 8 | Chelmsford | 29,936.17 | 967.55 | 43.4% |
| 9 | Bath | 26,597.50 | 854.06 | 43% |
| 10 | Colchester | 27,111.15 | 851.65 | 42.4% |
“London continues to stand out as the least affordable city,” Hutchinson noted. "Tenants in boroughs like Enfield are spending more than half of their income on rent. Meanwhile, more affordable areas such as Hull and Blackburn offer some relief but may face increased demand as rent rises elsewhere.”
Hull is now the most affordable city in the UK for renters, overtaking Doncaster. In Hull, tenants spend 31.9% of their income on rent, significantly below the national average. The North East is currently the most affordable region overall, with a regional average of 34%. This represents a 14 percentage point gap compared with London.
Outside of major cities, certain postcode areas also stand out for their relative affordability. Dumfries has the lowest rent-to-income ratio at 30.9%. In Blackburn and Halifax, tenants pay 32.1% and 32.2% of their income on rent, respectively.
Hutchinson added: “Wage growth is still struggling to keep pace with rental inflation, leaving tenants with less disposable income for essential living costs or saving for the future. These regional disparities highlight the need for targeted solutions to support renters and improve affordability nationwide.”
The latest index underlines the persistent regional divide in rental affordability. All ten of the least affordable cities are in southern England, while none of the ten most affordable are located in the south.
