The bank used recently published government data that calculates the average percentage of annual salary spent on rental payments to determine the affordability ratio.
Copeland topped the list as the most affordable place to rent in England, with just 14 per cent of annual salary being spent on rent. Furthermore, the North West was also shown to be the most affordable region to rent, followed by the North East and Yorkshire.
The least affordable locations to rent were all in London. Kensington & Chelsea headed the list, where the average rent was 98.1 per cent of the average resident’s salary, while Westminster was 91.3 per cent. Hackney came in at 63.3 per cent, while Hammersmith & Fulham and Camden were around 61 per cent.
According to property type, the average four-bed home amounted to 56.1 per cent of a tenant’s salary to rent, followed by a three-bed at 38.7 per cent, a two-bed at 31.3 per cent and a one-bed at 25.2 per cent.
Top 10 most affordable areas in England
|Affordability ratio %|
|North East Lincolnshire||28,767||5,646||19.6|
Top 10 least affordable areas in England
2020 income £
Mean rental £
|Kensington & Chelsea||46,568||45,701||98.1|
|Hammersmith & Fulham||41,262||25,200||61.1|
Paragon’s managing director of mortgages, Richard Rowntree, (pictured) said: “These figures paint a revealing picture, with the most affordable rental locations mainly concentrated in northern areas.
“House prices are typically lower in these regions, meaning that rents tend to be lower.
“At the other end of the scale, it is not surprising to see London as home to the least affordable locations and that is why London has the highest proportion of house sharers in the UK.”