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Our quarter one 2025 index covers the first three months of the year and represents the first chance to compare data from the previous year, having launched the index for the first quarter of 2024.
The index uses data from nearly 100,000 individual renters on the Canopy database from across the country.
The report measures the average take-home salary of employed tenants against their share of rental costs, to create a rent to income ratio (put simply, what percentage of their salary is spent on spent on rent).
The average tenant is at the edge of affordability
Typically, spending 40% of take-home salary is considered the very outer limit of affordability. Our quarter one 2025 index reveals that the average tenant now spends 40% of their take-home salary on rental payments. This has risen by 4% since this time last year, with rental affordability seemingly decreasing nationwide.
While many will spend 40% of their salary or less on rent, this suggests that many will be paying more than 40%, with some paying much more. In fact, one in seven (13%) tenants actually spend over half of their take home salary on rent.
One in 20 of those who rent in this country (4%) spends over 80% of their salary on rent. On average, tenants now spend £846 per month on their share of the rent – this has risen from an average of £822 this time last year.
London analysis
In the capital, tenants in Enfield are paying the highest percentage of their salary on rent.
Those in the North London borough are spending over half (55.5%) of their salary on rent, with those in Haringey (52.9%), Brent (51.5%), Redbridge (51.5%), and Barking and Dagenham (50.8%) also using the majority of their pay check on rent payments.
Brighton overtakes Bournemouth as most unaffordable city outside London
Brighton has overtaken Bournemouth as the least affordable city outside of London in the UK, with the typical tenant in the South Coast city spending 46.2% of their wage on rent.
However, London now takes top spot, with the average tenant spending 47.3% of their wage on rent.
The South appears to be more expensive for tenants in general, with none of the ten most affordable cities located in the south of the country. All ten of the most affordable cities are based in the Midlands, Northern England, Scotland or Northern Ireland.
Doncaster, South Yorkshire, is the city with the highest level of rental affordability – tenants in Doncaster spend less than a third of their salary (31.8%) on rent.
Top ten least affordable local authority areas to rent in
In a sign of how expensive the capital is for tenants, the nine most unaffordable local authority areas are all in London. Gravesham (48.9%) is the only non-London area in the top ten – even then, it is on the River Thames and very close to the capital!
Chesterfield, East Midlands, is the most affordable local authority area in the country. Tenants in Chesterfield spend just 29.1% of their take-home pay on rent, leaving 70.9% of their wage to spend on other essentials and leisure time.
Chris Hutchinson, CEO at Canopy, commented: “Our latest index shows that rental affordability continues to elude many tenants, with a large portion of UK renters now spending over 40% of their take-home salary on rent.
“Wage growth continues to be slow, and those spending a higher portion of their salary on rent can be expected to struggle to pay their essential bills and have little left to spend on hobbies and general leisure time.
“The problem is that increased regulation, rising interest rates, and a growing tax burden are all making property investment less attractive, and making it more likely that more landlords will exit the market altogether. The more landlords that leave the market will also make it more likely that rental affordability will worsen, with less properties to meet demand.”
Read more on how to make the most of your finances
Rental affordability is an ever-growing challenge for many, and we’re here to help both tenants and landlords tackle this and other issues that can arise in the competitive and evolving UK rental property market.
Our RentPassport provides a digital footprint that can take the hassle out of the process for renters, making tenant referencing for letting agents and landlords.
Next time you move all you need to do is show letting agents and landlords your RentPassport which shows your previous rent history and puts their mind at ease to give you the green light without worrying about affordability.
Check out our resources page for more information and advice on all things rent.
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