Tenants in the UK are spending 32.7% of their annual income on rent, according to new research from Lomond, as average monthly rents reach £1,369.
The data shows average monthly rent has increased 4.3% year-on-year, continuing an upward trend in the rental market. The findings come as the sector adjusts to the Renters’ Rights Act, which was introduced earlier this year.
Regional variations
Significant regional disparities exist across the country. London commands the highest rents at £2,418 per month, 76% above the national average. The North West and Yorkshire both recorded 5% annual increases, with average monthly rents reaching £1,215 and £1,283 respectively.
In Yorkshire, lettings activity remained stable during the three months to the end of June, with higher tenant move-ins compared to the same period last year. Two and three-bedroom terraced and semi-detached properties were the most sought-after property types in the region.
The research revealed the average tenant age is 31.5 years, with Scotland recording the youngest average at 25 years old.
Market implications
John Ennis, Chief Revenue Officer of Lomond, stated: “The rental market remains resilient, but affordability continues to be a key consideration for many households. With tenants now spending almost a third of their annual income on rent, the importance of delivering well-managed, high-quality homes in the right locations has never been greater.”
The data suggests tenant priorities are shifting towards long-term value, whilst letting agents adapt to regulatory changes. The Renters’ Rights Act has prompted landlords to focus on sustainable, long-term tenancies.
Ennis noted that success in the current market depends on matching tenants with appropriate properties rather than simply filling vacancies quickly. This shift comes as affordability concerns continue to shape rental market policy discussions, whilst landlord ownership structures evolve.
The 32.7% income-to-rent ratio represents a significant financial burden for tenants across the country, particularly in high-cost areas where the percentage is likely to be considerably higher.
