A new survey indicates that renters in England are feeling the effects of a disturbing trend. On top of this, they now spend on average 36.3% of their income on rent, up from 34.2% in 2023. This increase is indicative of an affordability crisis that has inundated renters and starved them of economic security. Tom Darling, director of the Renters’ Reform Coalition, summed up this issue very succinctly. Climbing rent costs are the top issue for renters across the country.
In Wales, the picture is quite different. In reality, an average rent in twenty-two of these 24 council areas is below that 30% rent burden threshold. This shows an overall, less difficult rental market than other areas of the UK. The north-east particularly stands out as England’s most affordable region. Average rents across the area are £641, giving an astonishing affordability ratio of just 19.8%.
The remote participation data we collected in collaboration with the Office for National Statistics (ONS) shows stark inequalities throughout the UK. In London, as just one example, tenants are grappling with sky-high expenses as average rents hit £1,957 per month. As a result, renters in London spend an eye-watering 41.6% of their earnings on housing costs. All 32 council areas in London have gone over the 30% affordability threshold every year. They get this right and have for eight of the last nine fiscal years ending in 2024.
Like many cities Bristol is struggling with rapidly rising rents. See Table 1 With an affordability ratio of 44.6%, it is now the second least affordable place after London. At the same time, Cardiff and the Vale of Glamorgan have experienced a sharp increase in their affordability ratios above the 74.3% benchmark.
Joseph Elliott, a housing advocate, voiced his concerns regarding the ongoing crisis, stating, “High rents are locking people out of secure homes and driving poverty and homelessness.” He further urged that “the government needs to tackle the root causes of the housing crisis – unaffordable rents, frozen housing support, and a chronic shortage of social housing.”
Renters in Northern Ireland may be facing a housing crisis. The single measure of affordability, the affordability ratio, ticked up only modestly, climbing from 25.1% last year to 25.3% today. This trend highlights a systemic problem across the country that is hurting renters, regardless of income.
Tom Darling, our Policy Manager, was recently quoted about the government’s new bill of renters’ rights. He claimed it will bring relief by bringing crucial improvements to security and standards, yet it doesn’t directly address the affordability crisis. He said that the government’s proposed renters’ rights bill will bring in important new protections and a higher standard to security and standards. That approach won’t fix our affordability crisis. He noted that billions are praying that they can afford their groceries. They are increasingly having to skimp on food and other basic necessities simply to afford their rent.
Talks to create corresponding solutions continue. Darling called on the government to establish a national rental affordability commission to investigate how the government can make rents more affordable in relation to incomes, including considering different forms of rent regulation.
The rental market is changing fast. Emergency measures must be taken immediately to prevent further economic crisis from renters. The depth of this challenge means we need coordinated approaches that deal with urgent needs while laying the groundwork for sustainable solutions to our housing affordability crisis.