Private renters in England are handing over more than a third of their household income to cover average rent costs, according to new figures from the Office for National Statistics (ONS).

In the financial year ending 2024, renters on an average income spent 36.3% of their earnings on rent – well above the widely accepted 30% affordability threshold. By contrast, renters in Wales and Northern Ireland spent 25.9% and 25.3% respectively.

The data highlights a long-running affordability squeeze in England’s rental market. While affordability has fluctuated since 2016, England has consistently stayed above the 30% mark, unlike Wales and Northern Ireland, which have remained below and closely aligned in recent years.

The ONS also noted that while renters’ incomes have generally risen faster than rents across all three nations since 2016, the trend reversed after 2021. In England, incomes continued to outpace rent growth, but in Wales and Northern Ireland, rents began climbing faster than wages — worsening affordability.

The findings shine a spotlight on the growing pressure renters face, especially in England, as housing costs continue to eat into household budgets.

London remained the least affordable region, with private renters spending 41.6% of their household income on average rents.

At the other end of the scale, the North East was the most affordable region, with rents equivalent to just 19.8% of household income.

Out of 316 local authorities in England and Wales, two-thirds (68.7%) had an average rent below the affordability threshold in 2024, a similar share to the previous year.

Hartlepool was the most affordable local authority, with rents accounting for 15.9% of household income.

Kensington and Chelsea remained the least affordable at 74.3%, continuing its position as the most expensive area in the series.

Richard Donnell, Executive Director at Zoopla, commented: “The affordability of renting has worsened in 2024 as rapid growth in rents has outpaced the rise increase in household incomes. Strong demand for rented homes on higher migration for work and study together with higher mortgage rates has boosted rental demand while the number of homes for rent has remained static for a decade as landlords slow investment.

“The rental supply/demand imbalance remains but growing affordability pressures for renters, especially across UK cities, is limiting the pace at which rents are rising for new lets. Zoopla’s latest rental index shows rents are increasing at 2.7%, the lowest rate for 4 years – since July 2021.”Lower rent inflation will be welcome news for renters but only by growing the supply of rented homes can the pressures on Britains renters be truly eased.”

Megan Eighteen, president of ARLA Propertymark, said: “Affordability has tightened throughout the UK due to several factors, including rising mortgage rates, increased living costs, and stagnant wage growth in some regions.

“With the average rental price now sitting at £1,344 across the UK, this would mean a renter would need to have a salary of around £40,320 just to qualify to rent a home at this price.

“It’s vital that we address the underlying causes of rising rents directly. Ongoing regulatory and financial pressures on landlords are driving many out of the market, especially when there is such a pressing need for housing, which is a key factor in the significant rent increases we’re seeing.

“Investment from reliable and professional landlords is essential, as the private rental sector is instrumental in providing housing for the nation. This can only be achieved with the backing and understanding of all levels of government across the UK.”