Tenants hit affordability limits as rents rise

Renters are spending a record share of their income on housing, with regional differences widening and younger tenants facing the steepest pressure.

The average UK renter spent more than £10,000 on rent in 2025, equivalent to 41% of their take-home pay, as rising housing costs outpaced wage growth and pushed affordability to what analysts describe as the “outer limit”.

New figures from tenant and landlord services provider Canopy show renters paid an average of £10,580 last year, up £684 on 2024. While net incomes rose modestly to £28,810, the share of salary spent on rent jumped from 36% to 41%, based on analysis of more than 119,000 tenants.

Typically, spending 40% of take-home pay is considered the edge of affordability. Several regions now exceed that benchmark. London remains the least affordable area at 48%, despite having the highest average income, while the South East follows at 44%. In contrast, the North East has a ratio of 34%, with Yorkshire and the Humber at 35%.

Every London borough is now above the 40% threshold. Outside the capital, Brighton is the least affordable city at 47%, while Durham, Doncaster and Hull rank as the most affordable at 32%.

Young renters face the steepest pressure, with 18- to 25-year-olds spending 50% of their take-home pay on housing.

Tenants are being stretched to the outer limits of rental affordability.”

Charlotte Benson, Customer Operations Manager at Canopy, says: “Tenants are being stretched to the outer limits of rental affordability as financial strain continues, and in certain areas the situation is becoming even more severe.

“On average, renters are now spending an average of 41% of their take-home salary on rental payments… A third of London Boroughs are seeing renters pay over half of their salary towards rent, even before other essential payments are accounted for – creating an unsustainable situation.

“After a tough 2025, these changes will hopefully see improvements in rental affordability across the UK in 2026.”