According to the Office for National Statistics (ONS), private renters in England spent 36.3% of their income on rent, compared to 25.9% in Wales and 25.3% in Northern Ireland.
Compared to 2023, private renters on a median income in England spent less of their earnings on an averagely priced rental home, at 34.2%, while renters in Wales spent more in 2023 than in 2024, with rent taking up 27.2% of their income.
In England, this represented a monthly income of £3,396 compared to a rent of £1,232, while in Wales, the monthly rent of £702 compared to an income of £2,713.
In Northern Ireland, the average household income was £2,974 compared to a rent of £751.
Data for Northern Ireland was not collected in 2023, but 2022 figures showed that rental affordability in England that year was 26%, compared to 23% in Wales and 25% in Northern Ireland.
The growth of ‘just-off-high-street’ lending
Sponsored by Pepper Money
The ONS said private rental affordability had “fluctuated” since 2016, but generally remained above the 30% threshold in England, while affordability in Wales improved over time to levels similar in Northern Ireland.
Incomes have risen faster in all three countries since 2016, but since 2021, rents have started to rise faster. At the same time, incomes rose faster than rents in England, but slower in Wales and Northern Ireland.
The ONS said the incomes of privately renting households had fluctuated more than rents.
Rental affordability across local regions
The North East of England was the most affordable for private renters in 2024, with average rental prices of £641, making up 19.8% of typical incomes. This was followed by the East Midlands and Yorkshire and the Humber.
London was the least affordable, with average rents of £1,957 accounting for 41.6% of income.
London rents have made up between 38.5% and 57% of incomes since 2016, while this has varied between 19% and 36% in other regions.
Richard Donnell, executive director at Zoopla, said: “The affordability of renting has worsened in 2024 as rapid growth in rents has outpaced the rise 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, [are] 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 Britain’s renters be truly eased.”
