Housing affordability remains one of the defining challenges of the UK housing market. Rising housing costs, limited housing supply, and the enduring cost-of-living crisis mean that many households are struggling to balance their budgets and find affordable housing options. Yet, our recent analysis shows that the story is more complex than the headlines suggest.

Our research focuses on the rental market and finds that while housing affordability stress is acute for many, a significant and growing cohort of high-earners are choosing to rent, spending a much smaller proportion of their income on rent. Both groups are potentially underserved by the range of options in the current rental market.

A divided picture of renter affordability

Our latest study, based on over 8 million rental records, shows that 21% of UK renting households spend more than 40% of their gross monthly household income on rent. These are households facing clear affordability stress – often medium to low-income families, young professionals, or those living in high-demand cities such as London, Brighton, and Edinburgh.

At the same time, 24% of UK renters spend less than 20% of their income on rent. This group is not only better positioned to withstand higher housing costs, but also represents a latent demand pool. With the right mix of quality, location and value, many could – and would – be likely to spend more on housing.

This divergence highlights why conventional affordability ratios (such as the 30% threshold) only tell part of the story. As Sandra Jones, Managing Director of PriceHubble UK, puts it: "Affordability metrics are key to understanding where housing stress is most acute and to identifying where there is the greatest opportunity to deliver more quality rental homes.”