Here is a number that does not quite add up at first glance. Average rents across the UK fell last month, and yet tenants are now spending more of their income on rent than they were a month earlier. Both things are true, and the gap between them tells you a lot about how the rental market feels right now.
What the October figures say
A rental index covering October found that tenants spent an average of 32.7% of their income on rent, up from 32.1% in September. That is nearly a third of every pay packet going on the roof over your head, and the share is still creeping up.
The odd part is that average rents actually slipped. They fell 0.9% to £1,375 a month. Even so, they remain 2.2% higher than a year ago. So a small monthly dip has not undone a year of increases, and incomes have not kept pace enough to bring the share down.
London against the rest
Greater London remains the most expensive place to rent in the UK, with average monthly rents of £2,260. Londoners now spend 38.9% of their income on rent, up from 37.9% in September.
Outside Greater London the picture is gentler but moves in the same direction. Average rents dropped 1% to £1,164, yet tenants in those areas now spend 31.1% of their income on rent, compared with 30.5% in September.
For anyone renting in Hornchurch and across Havering, you sit between the two: closer to London prices than to the national average, with the commute that goes with it.
Across the nations and regions
Northern Ireland recorded the highest rental burden, with tenants spending 39.4% of their income on housing costs. Scotland recorded the lowest proportion at 26.8%. The North East remained the cheapest market, with average rents of £727 a month, while the South East recorded the largest monthly fall, down 2.7% to £1,432.
Averages hide a lot. A single month's movement is not a trend, and your own street may look nothing like the headline. But the direction of travel for the share of income is the part worth paying attention to.
What tenants can do
- Know your own ratio. Divide your monthly rent by your monthly take-home pay. If it is well above a third, build in a buffer for bills and emergencies.
- Ask before you assume. Rents are agreed between a landlord and a tenant, and a fair, well-presented request is always worth making at renewal.
- Check your rights. The rules for renters have changed, including how rent increases are handled. Our renters' rights guide explains what applies to you in plain English.
- Keep your paperwork tidy. Proof of income and a clean reference history help if you ever need to move, and they give you more choice.
A word for landlords
The same figures matter on the other side of the table. When tenants are stretched, affordability checks and referencing matter more, because a tenancy that is comfortable at the start can become tight if circumstances change. Sensible rents and good communication keep good tenants in place. If you let a property, our landlord page shows how we help, and you can see how our lettings service works on the lettings page.
The bottom line
Falling headline rents are not the same as rents getting easier to afford. Until pay catches up, the share of income going on rent is the number to watch, and it is worth knowing where you stand against it.
If you are renting and want a straight answer on your options, whether that is renewing, moving or buying, get in touch. Our help is completely free.
Quick answers
What share of income do tenants spend on rent?
In the October figures, tenants spent an average of 32.7% of their income on rent, up from 32.1% in September. In Greater London the figure was 38.9%.
Did rents go up or down in October?
Average UK rents fell 0.9% to £1,375 a month, but they are still 2.2% higher than a year ago.
Which part of the UK has the cheapest rents?
The North East remained the cheapest market, with average rents of £727 a month.