HomeLet’s latest rental affordability report finds tenants aged 70 and over spend an average 46.8 percent of their gross income on rent, putting the group well above the 40 percent level the referencing firm describes as the outside edge of affordability.
The analysis covers millions of tenant references processed between January 2025 and August 2026. It puts the typical UK tenant’s rent-to-income ratio at 32 percent, but records 36.5 percent for renters aged 60-69 and 35.3 percent for those aged 20-29.
Rent setting and referencing decisions are becoming harder where household budgets have so little spare capacity. The figures do not mean older tenants are a poor prospect, but they make a case for checking income, savings and any guarantor support against local rents rather than relying on a standard income multiple alone.
Older renters face the sharpest affordability gap
HomeLet says the pressure is not uniform. London has the highest regional ratio at 37.9 percent, while the North East stands at 31.1 percent and Yorkshire and the Humber at 28.4 percent. That gap means an identical rent increase can carry very different risks for a landlord’s applicants depending on where the property is located.
The report also puts average UK rent at £1,382, up 4.1 percent year on year. That figure is a snapshot of the referenced applications in HomeLet’s data, rather than a measure of every tenancy in the market, but it provides a timely indication of how much room applicants have left after rent.
This follows Landlord Knowledge’s September coverage of HomeLet’s £1,382 average new-tenancy rent, which recorded the same annual increase. The new breakdown shifts the focus from headline rent growth to the tenant groups carrying the tightest income burden.
Guarantor use rises as affordability narrows
Just over one in five tenant applications – around 21 percent – involved a guarantor by August, according to the report, after rising steadily since early 2025. HomeLet says that may reflect applicants sitting close to, or beyond, traditional affordability criteria.
That does not prove a rise in arrears, and a guarantor should not replace a full reference or a review of the agreement. It does, however, suggest that landlords who price at the top of a local market may need a clearer plan for how they assess sustainable affordability and guarantor strength.
Landlord Knowledge previously reported that guarantor demand increased after the Renters’ Rights Act. HomeLet’s figures add a live affordability measure to that wider pattern, with pension-age renters standing out as the most exposed group in its sample.
The full HomeLet affordability report advises landlords and agents to consider rent-to-income ratios, employment type and guarantor trends together. Its underlying data is based on referenced applications, so it should be used as a risk indicator rather than a substitute for case-by-case judgement.
What this means for landlords
- When setting a new rent: Compare the proposed figure with local applicant incomes, not just nearby asking rents, especially in London and the South East.
- If an applicant is close to the income threshold: Check whether savings, pension income or a properly referenced guarantor make the tenancy sustainable.
- For older applicants: Avoid assumptions based on age alone, but test affordability carefully where a fixed income leaves little margin after rent.
- Before accepting a guarantor: Confirm identity, income and legal liability, and make sure the guarantee is properly documented.
- Bottom line: A higher advertised rent is not always the stronger outcome if it increases void, arrears or tenancy-breakdown risk.
Editor’s view
HomeLet’s data is a warning against treating a passing income multiple as the end of the underwriting process. Landlords still need to price competitively, but a tenancy that works on paper only after a guarantor is added deserves closer attention.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 23 September 2026
Sources: HomeLet UK Rental Affordability Report
Related reading: HomeLet: UK new-tenancy rents hit £1,382 in August
