New figures from the English Housing Survey 2023–2024 have revealed that private renters are now spending more on housing than mortgage holders, exposing a deepening divide in household affordability. The findings show that private renters paid an average of £237 a week, compared to £222 for mortgage-holders—despite typically having lower incomes and fewer savings.
Landlords, often painted as the problem, are in fact keeping the system afloat—providing homes in a broken market where owning is simply out of reach for many. But the real issue isn’t rent—it’s how little support renters get to escape the housing limbo.
Renters losing income and stability
The data paints a stark picture. Private renters spent 34% of their income on housing, compared to just 19% for mortgage holders. Retired renters fare worse, parting with 38% of their pension income on rent, while retired homeowners pay only 18% towards mortgages.
Younger tenants are particularly squeezed. “Private renters aged 16 to 24 spent half (50%) their income on rent,” said Sarah Coles, head of personal finance at Hargreaves Lansdown. “Tenants in London are struggling too—spending an average of 46% of their income on rent.”
Renters are also less financially resilient. Only 52% of private renters have any savings, compared to 79% of owner-occupiers, which leaves many unable to build up a deposit or prepare for future financial shocks. As Coles pointed out, “They struggle to put money aside for any reason… they’re only able to put away 2.7% of their income for the future.”
For landlords, this data underscores the importance of long-term renters in a system where homeownership has become increasingly unattainable—and how essential the private rented sector is to national housing stability.
Housing affordability now affecting retirement
It’s not just the younger generation feeling the strain. Housing affordability is reshaping what retirement looks like for millions across the UK. “Our retirement reality is shifting,” said Helen Morrissey, head of retirement analysis at Hargreaves Lansdown. “Retired households paid 18% of their income on mortgage costs and a whopping 38% for renters.”
She warned that only 15% of renters are on track for a moderate retirement income, compared to 47% of homeowners, highlighting how the financial burden of rent ripples well beyond working age.
This has serious implications for future policy. As Morrissey notes, “It will be interesting to see the role housing costs play in the upcoming government review into pension adequacy.” The knock-on effects of expensive rents are making it harder to save for either a deposit or retirement, tightening the trap for millions of working renters.
And while tools like the Lifetime ISA offer some hope, helping first-time buyers save up to £4,000 annually with a 25% government bonus, such schemes remain underused. Coles added, “If you qualify, it can help those who need it most to take their first step on the property ladder.”
Landlords essential in a market that fails first-time buyers
This latest data makes one thing abundantly clear: the UK rental sector is more than just a stopgap—it’s a core component of the housing ecosystem, supporting millions who simply cannot afford to buy.
Rather than vilifying landlords, policymakers must work with them. The real challenge is not rent itself, but a lack of affordable routes out of renting—especially for younger people and pensioners.
Landlords continue to meet a vital need in a system that’s failing to provide adequate alternatives. Without them, where would these renters go? It’s time the narrative shifted to acknowledge the essential role responsible landlords play in keeping the country housed—and to address the root causes of why so many can’t afford to leave the rental market in the first place.
Data on renters from the English Housing Survey was published today: English Housing Survey 2023 to 2024: rented sectors – GOV.UK
