Private tenants in England are spending more than a third of their household income on rent, according to new analysis by campaign groups Generation Rent and the Renters’ Reform Coalition.
Using Office for National Statistics data, the organisations calculated that renters on a median household income spend approximately 36% of their earnings on rent. This means the average tenant effectively spends all income earned up to mid-May on housing costs alone, a milestone the groups have termed ‘cost of rent day’.
Regional variations
The data reveals significant regional disparities in rental affordability across England. In Kensington and Chelsea, renters do not reach their equivalent ‘cost of rent day’ until 26th September, reflecting the capital’s higher rental costs relative to incomes. The London average falls on 2nd June, while Bristol follows on 13th June.
By contrast, renters in York and Exeter reached the milestone on 4th May, with Bournemouth, Christchurch and Poole, and Stratford-on-Avon following on 8th May.
Policy context
The analysis arrives as the Renters’ Rights Act comes into force, introducing measures to limit rent increases to once annually and strengthening tenants’ powers to challenge rises deemed unfair. The timing coincides with broader scrutiny of housing policies across England’s political landscape.
Generation Rent Chief Executive Ben Twomey told the Independent that high rents are leaving tenants struggling to cover essentials. He has called for metro mayors to be given powers to limit rent increases, stating: “It’s not right that over four months of our income every year is being swallowed up by landlords.”
Clara Collingwood, Director at the Renters’ Reform Coalition, noted that unaffordable rent increases can still force tenants out of their homes despite the new legislation.
Market implications
The findings highlight ongoing tensions in the private rental sector between affordability pressures on tenants and operational challenges for landlords and property platforms. The 36% income-to-rent ratio exceeds the 30% threshold traditionally considered affordable in housing policy.
The data suggests that rental affordability varies considerably by location, with implications for regional property investment strategies and tenant retention rates across different markets.