LandlordBuyer’s latest assessment of the private rental market shows tenants are now allocating a record proportion of their income to housing, highlighting deepening affordability concerns.
The analysis, based on current official data, indicates that rent increases are continuing to outstrip earnings growth, placing additional pressure on household budgets.
- Typical monthly private rent has reached £1,360 across the UK.
- Rents have risen by 5.0% over the past year.
- Rent now accounts for 36.3% of tenant income.
- This figure stood at 34.2% a year earlier.
- Spending above 30% of income on housing is commonly viewed as unaffordable.
- In areas of strong demand, the proportion is substantially higher.
These figures suggest that renters are devoting more of their income to housing, leaving less available for essentials and long-term financial planning.
LandlordBuyer says rising landlord costs, interest rate pressures and limited housing supply are continuing to drive rental growth.
The company also reports that some landlords are exiting the market, reducing available stock and increasing competition among tenants.
It describes the situation as a structural shift in the rental sector, with affordability becoming a key issue for all stakeholders.
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.”
LandlordBuyer maintains that increasing housing supply and supporting stability in the private rented sector will be essential to address the affordability challenge, while continuing to offer solutions for landlords selling tenanted homes.