LandlordBuyer has released new findings indicating that renters across the UK are committing an increasing proportion of their earnings to housing, reflecting worsening affordability.
Using the latest official statistics, the study shows that rental growth continues to outpace wage increases, tightening household budgets and reshaping conditions in the private rented sector.
- Average monthly private rent has risen to £1,360.
- Rental prices have increased by 5.0% over the last year.
- Tenants are now spending 36.3% of their income on rent.
- This compares with 34.2% the year before.
- Housing costs above 30% of income are widely considered unaffordable.
- In high-demand markets, the share of income spent on rent is significantly higher.
The data suggests that a growing portion of income is being absorbed by housing costs, reducing capacity for savings and essential spending.
LandlordBuyer attributes the trend to persistent supply shortages, higher financing costs for landlords and continued regulatory changes, all of which are contributing to rent increases.
The company reports that financial pressures are leading some landlords to withdraw from the market, further limiting supply and increasing competition for available properties.
According to LandlordBuyer, these developments indicate a structural shift in the rental landscape, with affordability now a central concern for the sector.
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.”
The firm says that increasing housing availability and improving market stability will be essential to address the issue, while it continues to support landlords selling tenanted properties without displacing occupants.