New data from analytics company TwentyCi reveals that monthly rents are unaffordable for the average tenant in every UK region except the North East. The findings, based on the latest Property and Homemover Report, highlight the growing challenges faced by renters across the country, with London tenants spending over half their income on rent.
The report compared regional median rents from Q3 2024 with average full-time incomes, as provided by the Office for National Statistics (ONS). According to the ONS, housing is considered affordable if rent accounts for 30% or less of household income—a threshold now exceeded in all but one UK region.
London tenants spend 57% of income on rent
Unsurprisingly, London emerged as the least affordable region. The average tenant in the capital spends 57% of their monthly income (£3,698) on rent, with the median monthly rental cost standing at £2,119. Outside London, the South East, South West, and East of England also report significant affordability challenges, with tenants in these areas spending more than 40% of their salaries on rent.
In stark contrast, the North East remains the only region where rents are considered affordable. However, the disparity highlights the pressure mounting on renters elsewhere, particularly in metropolitan areas with heightened demand and limited supply.
Rental property availability hits 15-year low
Colin Bradshaw, CEO of TwentyCi, attributes rising rental costs to a long-standing imbalance between supply and demand. “The ongoing shortage of rental properties in comparison with the surge in demand continues to drive rents upwards,” he explained.
TwentyCi’s data shows that the number of available rental properties in the UK fell to just 259,000 in September 2024—a 22% drop compared to the 332,000 available in September 2019. This marks the lowest level recorded in the 15 years TwentyCi has been collecting data.
The shortage has been exacerbated by landlords leaving the sector. In Q3 2024, 11.3% of all new properties for sale were previously private rental properties—a significant increase from 6.8% the previous year. Inner London saw the most dramatic shift, with 47.2% of all newly listed properties in Q3 2024 having been rented out in the three years prior.
Bradshaw noted: “It appears landlords have had enough and are selling up.”
What this means for landlords and tenants
The stark reality of unaffordable rents raises urgent questions about the future of the UK rental market. For tenants, the challenge of finding affordable housing continues to grow, particularly as wages fail to keep pace with rising rents. For landlords, regulatory changes and tax pressures are pushing many to exit the market, further tightening supply.
As the UK grapples with this ongoing crisis, stakeholders must consider how to address these challenges. Could government intervention stabilise the market, or will the exodus of landlords continue to worsen rental shortages?
The latest figures from TwentyCi paint a clear picture: without meaningful action, both renters and landlords will remain caught in an increasingly unsustainable cycle.
