Private renters in England spent a higher proportion of their income on housing than those in Wales and Northern Ireland in 2024, according to new data from the Office for National Statistics (ONS), highlighting the continuing strain on affordability across parts of the UK.

The figures show that median-income households renting privately in England spent 36.3% of their gross monthly income on rent in 2024, compared with 25.9% in Wales and 25.3% in Northern Ireland. England’s rental affordability has remained above the 30% threshold since 2016, while both Wales and Northern Ireland have remained largely below it, with Wales steadily improving over time.

London remains the most unaffordable part of the country, with private renters spending 41.6% of their income on average rents – a figure that continues to pull the national average upwards, despite most English regions sitting below the 30% benchmark. Of the 315 local authorities in England and Wales, 217 (68.7%) had average rents below the affordability threshold, similar to 2023.

However, the least affordable local authorities outside London continue to be urban hubs or commuter towns, including Bristol, Bath and North East Somerset, Brighton, Trafford, Sevenoaks and Watford.

The ONS data reflects long-term structural pressures in the rental market, with income growth outpacing rent increases between 2016 and 2021 across all three countries. Since 2021, however, rents have surged more rapidly in Wales and Northern Ireland, while England has seen a reversal, with incomes growing faster than rents.

Richard Donnell, executive director at Zoopla, noted that 2024 had marked a worsening in rental affordability, driven by strong demand and a stagnating supply of rental homes.

“The affordability of renting has worsened in 2024 as rapid growth in rents has outpaced the rise in household incomes,” said Donnell. “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.”

UNRESOLVED IMBALANCE

Zoopla’s own figures show rental growth has slowed to 2.7%, its lowest rate since July 2021, suggesting affordability constraints may be beginning to cap further increases. Even so, Donnell warned that the underlying imbalance between demand and supply remains unresolved.

“Lower rent inflation will be welcome news for renters,” he added, “but only by growing the supply of rented homes can the pressures on Britain’s renters be truly eased.”

The figures come amid growing political scrutiny over housing affordability, particularly for younger and lower-income households. Analysts say further intervention or policy reform may be necessary to address structural imbalances in supply, especially in high-pressure urban centres.