Housing Affordability Crisis as rents hit highest ever level relative to earnings

 

Housing Affordability Crisis as rents hit highest ever level relative to earnings

Figures from various sources agree that Housing Affordability levels hit new lows in March 2026 as growth in monthly rentals continued to outpace wages.

As of early 2026, the authoritative Canopy Rental Affordability Index shows that the average UK renter spends a new high of 41% of their net take-home pay on rent, with an average personal share of £882 per month. Affordability is severely strained, particularly in London (48% of income) and the South East (44%), with many tenants spending well over 40% of their income, marking a 5% increase in the rent-to-income ratio since late 2024. 

Commentators are suggesting that the situation can only get worse in the short term as smaller landlords quit the market in droves in response the new Renters’ Rights Act which kicks in on May 1st 2026.  This is  leading to severe supply shortages in a situation of high demand.

Jm April 15th 2026

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