Belfast is the most affordable major city in the UK for renters, with the average tenant spending less than a third of their take-home pay on rent. Canopy’s latest rental affordability index reveals that one in ten UK tenants (11%) are spending over 60% of their payslip on rental costs, with Belfast residents faring much better on average. Typically, spending 40% of take-home salary is considered the very outer limit of affordability. The average tenant in Belfast spends £644 on their share of the rent and earns £25,184 per annum after tax. This equates to spending 33.1% of their net pay on rent – around 3% less than the national average (36%), and much lower than major cities like London (45%), Bristol (41%) and Edinburgh (40%).
Major UK cities with the lowest rent to net income ratio
- Belfast - 33.1%
- Sunderland - 33.4%
- Newcastle upon Tyne - 33.7%
- Hull - 34.1%
- Aberdeen - 34.1%
- Wakefield - 34.3%
- Bradford - 35.5%
- Glasgow - 35.7%
- Sheffield - 35.7%
- Leeds - 35.8%
Staggeringly, one in 25 tenants (4%) across the UK as a whole spends over 80% of their take-home salary on paying the rent. Tenants in London (44.5%), the South-East (44.1%) and the South-West (41.3%) are paying the highest share of their salary on rent versus the national average. Northern Ireland is the most affordable area of the country, with the average tenant spending 32.9% of their wage on rent.
Average rent to net income ratio per UK region (highest to lowest)
- London – 44.5%
- South East – 44.1%
- South West – 41.3%
- East of England – 40.6%
- Wales – 38.4%
- West Midlands – 37.8%
- East Midlands – 37.3%
- Scotland – 36.9%
- North West – 36.6%
- Yorkshire and The Humber – 35.4%
- North East – 33.7%
- Northern Ireland – 32.9%
Chris Hutchinson, CEO at Canopy, commented: “Our latest data shows stark differences in rental affordability across the UK, with some areas facing extreme conditions. In particular, parts of London have become almost unattainable, with tenants spending more than 50% of their net income on rent. This simply isn’t sustainable in the long term.
“The rental market is in a fragile state. While it’s encouraging to see efforts being made to relieve pressure on tenants, any regulatory changes could inadvertently push landlords out of the market, shrinking the supply of properties.
“Most landlords are already adhering to the spirit of the Renter’s Reform Bill, but the full consequences remain uncertain. The Government must tread carefully, so as not to dis-incentivise landlords further, which could ultimately lead to additional rental price pressure, deepening the affordability crisis.”
Read more here: https://www.canopy.rent/rental-affordability-index/q3-2024