Our latest rental affordability index report provides data from quarter two in 2025, covering the period April to June. The report presents the opportunity to compare data from the first quarter of the year.
The index has used data from over 103,000 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 rent).
UK renters continue to be at the edge of affordability
The latest index reveals that the average UK tenant is spending 41% of their monthly take-home pay on rent, a slight increase from Q1 and a 5% year-on-year increase as affordable renting continues to get more difficult.
The average UK rent per tenant has increased by £35 per month in the last year, now costing the average tenant £854 per month.
Our experts suggest that spending 40% of take-home salary is considered the very outer limit of affordability, meaning the majority of tenants are currently at the edge of what is considered financially feasible or ‘comfortable’.
Regional disparity of rent
The findings show the regional disparities of rent across the UK, with tenants in the South of England spending a higher proportion of their income on rent than those in the North of England.
Unsurprisingly, London has the least affordable rent-to-income ratio, with renters spending nearly half (48%) of their take-home pay on rent.
South West England follows closely, with tenants spending on average 44% of their income on rent.
The North East of England remains the most affordable region, with tenants spending on average 34% of their paycheck on rent, a 14% difference compared to London.
What are the most expensive places to rent in London?
In the capital, tenants living in seven of the London boroughs are spending over half of their income on rent, an increase from five boroughs last quarter, all of which are located in either North or East London. Enfield remains the least affordable borough, with tenants spending 55.9% of their income on rent – a slight increase from the previous quarter.
The map below shows where the London Boroughs rank for rental affordability compared to all UK local authorities, in order of least affordable. Of the top 10 least affordable local authorities in the UK, eight of them are London boroughs, and all London Boroughs rent to income ratio is above the national average of 41%.
Wandsworth in South West London continues to be the most affordable London borough, with tenants spending 43.9% of their income on rent.
What is the most affordable city to rent in the UK?
In Q2, Hull has overtaken Doncaster as the most affordable city in the UK to live in, with tenants spending less than a third of their salary (31.9%) on rent.
Doncaster has dropped to second in the rental affordability rankings (32%), followed by Durham (32.5%) and Carlisle (32.9%).
Meanwhile, at the other end of the scale, London remains the least affordable city in the UK, with the typical tenant in the capital spending nearly half (47.6%) of their wage on rent.
There has been minimal movement in the least affordable rankings since last quarter. However, Southend-on-Sea has dropped out of the top ten and is now ranked eleventh, while Colchester has entered the top ten at tenth place, with tenants in the city spending 42.4% of their income on rent.
Tenants in major cities like Manchester, Birmingham and Leeds continue to spend a smaller share of their income on rent compared to their counterparts in the South. On average, tenants in Manchester allocate 39.4% of their income to rent, while those in Birmingham spend slightly less, at 38.3%. In Leeds, the figure is lower still at 35.7%.
Overall, the South of England remains notably more expensive, with none of the ten most affordable cities located in the region. All ten more affordable cities are based in Scotland, North East England, North West England, Yorkshire and the Humber, and the West Midlands.
Top ten least affordable postcodes to rent in the UK
It may come as little surprise that all ten of the least affordable postcodes are located in London.
Western Central London including Covent Garden and Kings Cross is the most expensive postcode to rent in the UK, with tenants spending on average 53.2% of their income on rent. Harrow follows closely in second at 52.5%, with Enfield coming in third at 51%.
Most affordable postcodes to rent in the UK
If your postcode starts with DG, it is most likely you are paying one of the most affordable rents in the UK. Dumfries is the most affordable area in the UK to rent, with a rent to income ratio of 30.9%.
Some of the most affordable cities in the UK also make the most affordable postcode areas rankings, including Hull (31.9%), Doncaster (32%) and Durham (32.5%).
Outside major cities, Blackburn and Halifax also stand out among the most affordable postcode areas, with tenants spending less than a third of their income on rent. On average, tenants in Blackburn spend 32.1%, while those in Halifax pay slightly more at 32.2%.
Chris Hutchinson, CEO at Canopy, commented: “Our latest figures for April to June 2025 reveal the ongoing rental affordability crisis across the UK. With the average tenant now spending just over 40% of their take-home pay on rent, it’s clear that many are living at the edge of financial comfort.
“London continues to stand out as the least affordable city, with tenants in boroughs like Enfield spending more than half of their income on rent. Meanwhile, more affordable areas such Hull and Blackburn offer some relief but may face increased demand as rent rises elsewhere.
“Wage growth is still struggling to keep pace with rental inflation, leaving tenants with less disposable income for essential living costs or saving for the future. These regional disparities highlight the need for targeted solutions to support renters and improve affordability nationwide.”
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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