Renters in England spend over one-third of their gross income on rent
The latest data published by the Office for National Statistics (ONS) shows that private rental affordability has once again worsened in England, with average rent now accounting for well over one-third of median gross incomes in the region.
According to the data, private renters on a median household income could expect to spend 36.4% of their pre-tax income on an average-priced rented home in England.
Private rental affordability remains lower in Wales and Northern Ireland, at 25.9% and 25.3% respectively. The ONS has defined an affordability threshold that describes any area where the average rent is 30% or more of the median gross income as ‘unaffordable’.
Most areas in England are below this ratio except for London, where the average rent is 41.6% of the median income – which keeps it well above the threshold.
Local authorities with the least affordable rents were all in London, and those areas with low affordability elsewhere in England included Bristol, Bath, Brighton, Nort East Somerset, and Trafford.
Commuter towns were also relatively unaffordable, including Watford and Sevenoaks.
The ONS also noted that the incomes of private-renting households have fluctuated more than rents, and that private renter incomes have increased faster than rents in England, Wales, and Northern Ireland over time.
However, rents have increased more quickly since the pandemic, and affordability has changed according to disparities in income growth between different areas.
The image below shows the affordability figures for England, including the disproportionately high affordability ratio of London.
