Renters in the UK spent on average 32.5 percent of their income on rent as of January 2025. Scotland and Yorkshire and Humber were the most affordable regions, with households spending less than 28 percent of their gross income on rent. Conversely, London, South West, and South East had a higher ratio. Greater London is the most expensive region for renters Greater London has a considerably higher rent than the rest of the UK regions. In 2024, the average rental cost in Greater London was more than twice higher than in the North West or West Midlands. Compared with Greater London, rent in the South East region was about 600 British pounds cheaper. London property prices continue to increase In recent years, house prices in the UK have been steadily increasing, and the period after the COVID-19 pandemic has been no exception. Prime residential property prices in Central London are forecast to continue rising until 2027. A similar trend in prime property prices is also expected in Outer London.

Expenditure on rent by renters and mortgages by mortgage holders, by region and age from the Living Costs and Food Survey for the financial year ending 2022. Data is presented as a proportion of total expenditure and a proportion of disposable income.

Percentage of total monthly household income spent on private rent for England, Wales and Northern Ireland, and by regions of England, financial years ending 2016 to 2024.

The average agreed rent for new tenancies in the UK ranged from *** British pounds to ***** British pounds, depending on the region. On average, renters outside of London paid ***** British pounds, whereas in London, this figure amounted to ***** British pounds. Rents have been on the rise for many years, but the period after the COVID-19 pandemic accelerated this trend. Since 2015, the average rent in the UK increased by about ** percent, with about half of that gain achieved in the period after the pandemic. Why have UK rents increased so much? One of the main reasons driving up rental prices is the declining affordability of homeownership. Historically, house prices grew faster than rents, making renting more financially feasible than buying. In 2022, when the house price to rent ratio index peaked, house prices had outgrown rents by nearly ** percent since 2015. As house prices peaked in 2022, home buying slowed, exacerbating demand for rental properties and leading to soaring rental prices. How expensive is too expensive? Although there is no official requirement about the proportion of income spent on rent for it to be considered affordable, a popular rule is that rent should not exceed more than ** percent of income. In 2024, most renters in the UK exceeded that threshold, with the southern regions significantly more likely to spend upward of ** percent of their income on rent. Rental affordability has sparked a move away from the capital to other regions in the UK, such as the South East (Brighton and Southampton), the West Midlands (Birmingham) and the North West (Liverpool, Manchester, Blackpool and Preston).

When comparing the mortgage or rental costs incurred by owners with mortgage, private renters and social renters in England, private renters pay a considerably larger share of their income than the other two groups. While owner occupiers with mortgages paid approximately **** percent of their income on mortgage in 2024, private renters paid ** percent, or more than *********. In terms of average monthly costs, renting a three-bedroom house is more expensive than buying.

Mortgage rates in the United Kingdom have been on the rise since 2022, leading to an increased cost burden for buy-to-let landlords. In August 2023, the average mortgage cost amounted to ** percent of rental income. In the same month of 2022, this figure amounted to ** percent.

Monthly data showing the proportion of gross income spent on rent for new tenancies across the UK, from Dataloft Rental Market Analytics (DRMA). These are official statistics in development. Source: Dataloft. Dataloft is a PriceHubble company.

Since 2015, the gap between the cost of buying a home and renting has grown, with homeownership becoming increasingly less affordable. In the ***** ******* of 2024, the house price to rent ratio in the UK stood at *****. That meant that house price growth has outpaced rental growth by nearly ** percent between 2015 and 2024. The UK's house price to rent ratio was slightly below the average Euro area ratio. House price to income ratio in the UK Another indicator for housing affordability is the house price to income ratio, which is calculated by dividing nominal house prices by the nominal disposable income per head. The ratio saw an overall increase between 2015, which was the base year, and 2022. After that, the index declined, but remained close to the average for the Euro area. Is it more affordable to rent or buy? There are many things to be considered when comparing buying to renting, such as the ability to qualify for a mortgage and whether prospective homebuyers have sufficient savings for a deposit. Generally, purchasing a home is more affordable than renting one. However, the average monthly savings first-time buyers can achieve have been on the decline. In East of England, where house prices have increased rapidly over the past few years, it was cheaper to rent than to buy in 2022.

What losses do landlords in the United Kingdom (UK) expect to face as a result of the coronavirus (COVID-19) pandemic and the lockdown imposed in **********? As of the beginning of ********, approximately ** percent of the landlords with arrears stated that they would most likely suffer two months rent lost or more. Approximately ** percent said that the losses could amount to less than *** month rent.

Rent Inflation in the United Kingdom decreased to 4.10 percent in October from 4.30 percent in September of 2025. This dataset includes a chart with historical data for the United Kingdom Rent Inflation.

Percentage of total monthly household income that is spent on monthly private rent, by region and country, England, 2012 to 2018.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

The highest rental yield in the UK property market in the first quarter of 2024 was in the North East region, amounting to **** percent. Conversely, private rental homes in London had the lowest average gross yield, at **** percent. Rental yield is a measure of profitability and shows the annual rental income as a share of the property price. Although higher yields imply a higher annual return, they do not take into consideration the rental growth and house price appreciation potential of the property.

This survey depicts the share of consumers who have used a car rental service in the United Kingdom in 2017, by net household income. According to the survey, ** percent of respondents in the UK with a net household income of ** thousand pounds or more have used a rental car service at least once.

Void periods constitute an important measure for the private rental markets, as they are one of the major reasons for the loss of expected rental income. They require careful planning and budgeting, to keep the time when the property is not achieving profit to the minimum and to make sure that all necessary expenses are still covered during the void period. As these differ across cities, towns and regions, researching of historical data, reflecting trends of void periods for the local area is seen as a good way to get an understanding of long-term trends.

Void periods for landlords in the UK

Data from the end of 2013 till quarter three of 2018 shows that void periods in the United Kingdom (UK) were shortest as of the first quarter of 2015, counting 2.4 weeks on average. They grew in length to 2.7 weeks in the last two quarters of 2016 and have stayed at that time length up until the fourth quarter of 2017. As of the third quarter of 2019, the average void period for landlords in the private rented sector amounted to 3 weeks, the highest average during the period under display.

Landlords and the rental market

In light of the coronavirus (covid-19) pandemic, approximately 3.4 percent of current and active landlords in the UK reported an increase in void periods and 16.4 percent that they experienced a combination of prolonged void periods and affected rental income. As of the fourth quarter of 2019, landlords already had low confidence in achieving their quarterly goals. The share of those who were planning to sell properties from their portfolio in the coming year was twice as high as the ones looking to buy.

Scotland had the highest interest cover ratio for buy-to-let properties in the UK in the third quarter of 2024. The average interest cover ratio in Scotland amounted to *** percent, while in London, it was *** percent. This means that landlords in Scotland had a much higher monthly rental income to total interest expenses on their outstanding mortgage than in London.

This statistics shows the level of concern with regards to making rent payments or mortgage repayments among adults in Great Britain as of a survey conducted in 2014, listed by respondents income bands. Among respondents earning up to 19,999 British pounds, 11 percent are very concerned about their ability to make rent or mortgage payments.

The majority of guests on Airbnb are women. Most Airbnb guests are aged 25 to 34.

Yields measure the amount the expected income on investments made as a percentage. Yields consider the cost of buying a property, it’s running costs and the income generated through renting the property. Yields grow or decrease based on occupancy rates of the area and industry as well as demand and confidence. In 2019, prime yields for office property in London fell below **** percent. Outside of London, prime yields in the United Kingdom ranged between **** percent and *** percent.

Prime office rents

Prime rents for office space in London are higher than the rest of the United Kingdom. The cost of rent varies due to a few factors including area, grade of property, amenities provided, and average area costs.

Vacancy rates lower than 10-year average

Compared to the ten-year average, vacancy rates in the capital of England were low. Areas such as the South Bank had vacancy rate of *** percent during 2019, which in turn is likely to further drive the cost of rent.