Soaring rents are making it nearly impossible for tenants to save for a home, with some renters forking out over 80% of their wages just to keep a roof over their heads.

New research from PropTech firm Canopy has revealed the extent of the UK’s rental crisis, with many struggling to afford basic living expenses after paying rent.

Canopy, which analysed data from over 46,000 employed renters, found that one in ten tenants now spend a staggering 60% or more of their take-home pay on rent.

Financial experts typically define “affordable” rent as around 30% of income. However, the average UK tenant now spends 35.7% of their wages on rent.

Rent Squeezing Budgets Across the UK

The research highlights the reality facing many renters:

• Nearly one in five (19.3%) of tenants spend at least half their salary on rent.
• A shocking one in 20 tenants (4.4%) shell out over 80% of their wages on rent.

Seaside City Tops the Charts for Rent Burden

Bournemouth emerged as the least affordable city for renters, with tenants there spending an average of 46.9% of their income on rent. Other cities with sky-high rent-to-income ratios include:

• Brighton: 46.3%
• London: 44.3%
• Edinburgh: 40.6%

Manchester was the only northern city to make the top ten list for unaffordable rent.

Affordable Havens in the North East

Renters seeking a better deal should cast their eyes towards the North East. Sunderland (32.8%) and Newcastle upon Tyne (33.7%) offer the most affordable rents compared to income. Belfast, with a rent-to-income ratio of 33.1%, also provides some respite from the soaring costs of renting.

London and the South: Least Affordable for Renters

London lives up to its reputation as a pricey location, with the average tenant forking over 44.3% of their hard-earned cash for rent. The South West (44.1%) and South East (41.1%) follow closely behind as the least affordable regions in the UK.

Saving for a Mortgage ‘A Serious Concern’

Canopy’s Chief Executive, Chris Hutchinson, expressed his concern over the findings:

“The average tenant in the UK is now spending over a third of their take-home pay on their share of the rent; in many areas of the UK the average rises higher than 40%.”

He added: “It is sobering to see that some tenants are even spending 80% of their salary on rent. Considering these numbers don’t include essentials like groceries, commuting costs and utilities bills, the figures raise serious questions on how feasible saving for a mortgage is for the majority of tenants in this country.”

Hutchinson also highlighted the precarious position of the rental market: “What is clear is that the market is in a precarious position, in that steps clearly need to be taken to make life easier for tenants, yet further regulation is likely to drive landlords away from the market and leave a smaller pool of properties available for tenants to choose from.”