Rent Costs Now Tops 36 Percent of Median Earnings in England
(MENAFN) Tenants across England are now spending over a third of their earnings on rent, with affordability worsening in urban hotspots like London, Bristol, and Brighton, according to new data released Monday by the Office for National Statistics (ONS).
The statistics show that in 2024, the average renter on a median income is allocating 36.3% of their earnings to cover rent—well above the 30% affordability benchmark set by the ONS. This marks a rise from 33.1% in 2023, underscoring the mounting strain on renters amid persistent cost-of-living pressures.
In the capital, affordability is particularly acute. London recorded a rental affordability ratio of 41.6% in 2024, the highest in the country. This elevated figure continues to skew England’s national average above the affordability line, even though most regions remain below it.
By contrast, the North East emerged as the most affordable region, with typical monthly rents averaging £641 ($868) in the financial year ending 2024. That accounts for just 19.8% of household income among private renters. The East Midlands and Yorkshire and the Humber followed closely in affordability rankings.
According to the ONS, surging rents have been driven by a combination of factors: a chronic mismatch between supply and demand, shifts in living and working patterns since the pandemic, and landlords hiking prices to offset rising borrowing costs.
In 2024, median earners in England were spending 36.3% of their income on an average-priced rented home, the ONS reported.
London's private rental affordability ratio reached 41.6% in 2024, the agency said.
In sharp contrast, the most affordable region in England was the North East, with average monthly rents at £641 ($868), or 19.8% of private-renter household income, the ONS noted.
The ongoing affordability squeeze is likely to intensify debate over housing policy, as tenants grapple with escalating rental burdens in an already strained economy.
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