Tenants across the UK are now spending an average of 36.3 percent of their income on rent, up from 34.2 percent last year, as rental costs continue to outpace wage growth, according to new analysis from LandlordBuyer.
The average monthly private rent has reached £1,360, representing a five percent increase over the past 12 months. Housing experts typically consider spending above 30 percent of income on rent to be unaffordable, placing many UK renters well into financially stretched territory.
Supply and demand imbalance persists
The ongoing imbalance between supply and demand, combined with rising landlord costs and sustained interest rate pressures, continues to drive rental growth. As a result, many renters are allocating a growing share of their income to housing, leaving less for essentials, savings and long-term financial security.
The trends have also affected landlords, with increasing numbers facing regulatory and financial pressures that have prompted some to exit the sector. This reduction in supply is further intensifying competition for available properties and pushing rents higher.
High-demand areas see highest strain
Renters in high-demand areas are spending significantly more than the national average. The situation reflects a structural shift in the housing market, with affordability becoming a central concern for policymakers, investors and housing providers.
Jason Harris-Cohen, managing director of LandlordBuyer, said the data showed rental affordability had reached a critical point.
“Tenants are now spending a record share of their income just to keep a roof over their heads, and this trend is not sustainable,” Harris-Cohen said.
“Rising costs, ongoing regulatory change and increasing financial pressure are pushing many landlords to reconsider their position in the market.”
For landlords, the data presents a mixed picture. While strong rental growth supports yields, there are limits to what tenants can afford. Properties in areas where affordability is most stretched may face higher void risk if tenants are forced to seek cheaper alternatives or leave the rental sector entirely.
The research draws on official ONS rental data and earnings figures to calculate affordability ratios across the UK.
Editor’s view
Landlords who have seen strong rent growth should be mindful that affordability constraints eventually create a ceiling. The sector’s long-term health depends on tenants being able to sustain their payments. Smart investors will be watching local wage data alongside rent figures when assessing their portfolios.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 25 February 2026
Sources: LandlordBuyer, ONS
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