Data from tenant and landlord services provider Canopy shows parts of the southern rental market are approaching their affordability limits, helping explain why the meteoric rent rises of recent years are already slowing and are expected to decelerate further during the course of 2026.
The regional picture, though, varies widely, with the Midlands, the North West, the North East and Yorkshire and The Humber still having room for increases.
Across the whole of the UK, the average tenant spent 41% of their take-home pay on rent in 2025, up from 36% in 2024. The personal share paid by each renter increased by £684 (6.9%) year-on-year, while average net income rose from £27,710 to £28,810. Spending 40% of take-home salary is considered to be at the “very outer limit” of affordability, placing the national average beyond what is considered financially “comfortable”.
Regional affordability gap widens
Despite recording the highest average income at £37,600, London remains the least affordable region at 48%. The South East is not far behind at 44%, along with the East of England at 42% and the South West at 41%.
The Midlands and the North West, though, are below the national average and the critical 40% level. The East Midlands and West Midlands both have rent-to-income ratios of 38%, while the North West is at 37%. Yorkshire and The Humber is at 35%, and the North East is the most affordable region at 34%.
Pressure most severe in London
In London, the average renter spent £15,684 on rent in 2025, up 10% from £14,248 the previous year. Every borough in the capital exceeds the 40% threshold, and in 12 of them, tenants spent more than half their income on rent, compared with three a year earlier. Enfield and Barking and Dagenham top the list at 55%, followed by Brent at 54%. Even Merton, the most affordable borough, is at an eye-watering 45%.
Outside London, Brighton is the least affordable city, with renters spending 47% of their income on housing. Edinburgh and Manchester are now among the top 10 least affordable cities. Durham, Doncaster and Hull, in contrast, are some of the most affordable, with tenants spending 32% of their income on rent.
Young renters hit hardest
It’s young adults who are facing some of the highest ratios. Renters aged 18–25 spent, on average, 50% of their take-home pay on rent. Those aged 26–45 spend 40%, which is in line with the national average.
Charlotte Benson, Customer Operations Manager at Canopy, says: “Rental affordability has remained a challenge for most tenants in the year of 2025, with our data highlighting how the percentage of take-home salary being spent on rent has increased across the nation.
“On average, renters are now spending an average of 41% of their take-home salary on rental payments. Tenants are being stretched to the outer limits of rental affordability as financial strain continues, and in certain areas, the situation is becoming even more severe.
High demand
“Unfortunately, with high demand, limited supply, and stagnant wage growth, rental affordability has not improved in the past year, particularly in the southern and highly urban areas.
“A third of London Boroughs are seeing renters pay over half of their salary towards rent, even before other essential payments are accounted for – creating an unsustainable situation. Despite these challenges, renting remains the only viable option for many who are priced out of homeownership.”
The Rental Affordability Index is based on analysis of more than 119,000 employed tenants and measures the share of net income absorbed by housing costs.
