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Join us for an outlook on the Housing Market 2026 and likely impact of the newly announced Budget in our webinar on 4 Dec. at 10 AM. Click here to register.
Join us for an outlook on the Housing Market 2026 and likely impact of the newly announced Budget in our webinar on 4 Dec. at 10 AM. Click here to register.
UK housing affordability under the spotlight: pressure points and untapped potential
Data Insights
Published by
PriceHubble
-
10 Sept 2025
UK housing affordability under the spotlight: pressure points and untapped potential
Data Insights
Published by
PriceHubble
-
10 Sept 2025
UK housing affordability under the spotlight: pressure points and untapped potential
Data Insights
Published by
PriceHubble
-
10 Sept 2025
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.”
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.”
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.”
Regional rental affordability contrasts
Affordability challenges are not uniform. Take two cities: Brighton and Leeds.
A household earning £50,000–£75,000 spends an average of 29% of its income on rent in Brighton (South East).
The same household spends just 21% in Leeds (West Yorkshire).
Both markets face affordability pressures for lower earners, but Leeds still offers more breathing room for middle-income renters. These differences are crucial for investors, local authorities, and Build-to-Rent (BTR) developers assessing where new developments are most viable.
Similarly contrasts can be observed elsewhere. As an example, Renters in London spend, on average, nearly 30% of their income on rent, making the capital one of the least affordable areas, compared to just under 21% in the North East. In Manchester (North West), renters spend on average 26% of their income on rent, while in Birmingham (West Midlands), the rental affordability ratio is 25% and in Liverpool, it is closer to 23%.
Our solution, Market Analyser, gives you instant access to local rental reports, heat maps, comparables, and key metrics such as renter demographics, average earnings and affordability metrics. It enables you to quickly assess opportunities in any UK housing market (including Wales and Scotland). Request a demo to learn more about Market Analyser:
Regional rental affordability contrasts
Affordability challenges are not uniform. Take two cities: Brighton and Leeds.
A household earning £50,000–£75,000 spends an average of 29% of its income on rent in Brighton (South East).
The same household spends just 21% in Leeds (West Yorkshire).
Both markets face affordability pressures for lower earners, but Leeds still offers more breathing room for middle-income renters. These differences are crucial for investors, local authorities, and Build-to-Rent (BTR) developers assessing where new developments are most viable.
Similarly contrasts can be observed elsewhere. As an example, Renters in London spend, on average, nearly 30% of their income on rent, making the capital one of the least affordable areas, compared to just under 21% in the North East. In Manchester (North West), renters spend on average 26% of their income on rent, while in Birmingham (West Midlands), the rental affordability ratio is 25% and in Liverpool, it is closer to 23%.
Our solution, Market Analyser, gives you instant access to local rental reports, heat maps, comparables, and key metrics such as renter demographics, average earnings and affordability metrics. It enables you to quickly assess opportunities in any UK housing market (including Wales and Scotland). Request a demo to learn more about Market Analyser:
Regional rental affordability contrasts
Affordability challenges are not uniform. Take two cities: Brighton and Leeds.
A household earning £50,000–£75,000 spends an average of 29% of its income on rent in Brighton (South East).
The same household spends just 21% in Leeds (West Yorkshire).
Both markets face affordability pressures for lower earners, but Leeds still offers more breathing room for middle-income renters. These differences are crucial for investors, local authorities, and Build-to-Rent (BTR) developers assessing where new developments are most viable.
Similarly contrasts can be observed elsewhere. As an example, Renters in London spend, on average, nearly 30% of their income on rent, making the capital one of the least affordable areas, compared to just under 21% in the North East. In Manchester (North West), renters spend on average 26% of their income on rent, while in Birmingham (West Midlands), the rental affordability ratio is 25% and in Liverpool, it is closer to 23%.
Our solution, Market Analyser, gives you instant access to local rental reports, heat maps, comparables, and key metrics such as renter demographics, average earnings and affordability metrics. It enables you to quickly assess opportunities in any UK housing market (including Wales and Scotland). Request a demo to learn more about Market Analyser:
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