Research from LandlordBuyer highlights mounting financial pressure on renters, with housing costs consuming a larger proportion of earnings than ever before.
Based on recent official statistics, the study shows rental prices rising more quickly than wages, leaving many households with reduced financial flexibility.
- Average private rent now stands at £1,360 per month.
- Rental levels have climbed by 5.0% over the last year.
- Tenants are spending 36.3% of income on rent.
- This has increased from 34.2% the previous year.
- Housing is generally deemed unaffordable when it exceeds 30% of income.
- Renters in high-demand locations are paying well above this threshold.
The findings suggest that a growing share of income is being absorbed by housing, limiting the ability of tenants to save or meet other living costs.
LandlordBuyer points to higher landlord expenses, interest rate pressures and a shortage of available properties as key drivers behind continued rent increases.
The company adds that regulatory changes and financial pressures are encouraging some landlords to leave the sector, further reducing supply.
According to LandlordBuyer, the trend represents a long-term shift in the housing market, with affordability becoming a defining issue.
Jason Harris-Cohen, Managing Director of LandlordBuyer, said: “The data clearly shows that rental affordability in the UK has 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.
“Rising costs, ongoing regulatory change, and increasing financial pressure are pushing many landlords to reconsider their long-term position. As supply tightens, the result is higher rents and reduced choice for tenants.
“We need a balanced approach that supports responsible landlords while improving access to affordable housing. Without meaningful action, the gap between wages and housing costs will continue to widen, and more households will face real financial hardship.”
The firm says that improving affordability will depend on stabilising the private rental sector and increasing the number of available homes, while it continues to support landlords seeking to sell tenanted properties efficiently.
