Is rent eating up your income? Here’s how you can cut costs as a renter

Renting a home is becoming harder to afford. On average, renters in England spend 36.3% of their income on rent. And in London, it’s even worse at 41.6%, according to the Office for National Statistics (ONS). 

Why rent is so unaffordable right now 

The ONS defines ‘affordable’ rent as costing no more than 30% of your income. But that’s no longer the norm: 

• In England, median earners spent 36.3% of their income on rent in 2024, up from 34.2% in 2023. 

• In London, all 32 boroughs have been over the 30% affordability threshold for eight out of the past nine years. 

• Outside London, the least affordable spots include Bristol, Brighton, Bath, Watford and Sevenoaks, which are all places popular with London commuters. 

However, there are still some more affordable regions: 

• The North East is the most affordable region in England (average rent is £641/month, 19.8% of income). 

• In Wales, most areas are still under the 30% threshold, with only Cardiff and the Vale of Glamorgan being above it. 

• In Northern Ireland, rent levels have stayed relatively flat, at 25.3% of income on average. 

Ways you can cut your rental costs 

Even if you can’t move right now, there are real, practical ways to lower your monthly expenses.  

Here’s where to start: 

Think about house sharing 

It’s not for everyone, but if you’re open to it, sharing a home can save you hundreds: 

• Split the cost of rent, utilities, internet and even things like cleaning products. 

• Many shared homes come fully furnished – so you save on furniture too. 

• Try SpareRoom, Roomies, or local Facebook groups to find rooms. 

Some rentals include bills like electricity, gas, internet and council tax. These can make budgeting easier and even work out cheaper.  

Always compare the total cost with a non-inclusive option, as what seems like a higher rent might actually save you money.  

Build a good relationship with your landlord   

Being a reliable, respectful tenant can actually pay off. A positive relationship could lead to: 

• rent freezes at renewal time 

• faster repairs and better maintenance 

• flexibility on payment dates or deposits 

Keep communication open, raise issues early and always pay on time. 

Cut your utility bills  

If bills aren’t included, there are still ways to save: 

• Turn down the thermostat and close curtains at night. 

• Only run dishwashers and washing machines when full. 

• Switch to energy-efficient lightbulbs and appliances. 

• Cut water usage – shorter showers and fewer hot taps help reduce energy bills too. 

• Shop around for broadband and mobile deals, as bundle packages can save you more. 

We’ve listed 50 ways to reduce energy bills.   

If you’re struggling to pay your bills and can’t change contract or get a better deal, talk to your provider as soon as possible.  

Understand your tenancy agreement   

Don’t skip the small print. Your tenancy agreement spells out: 

• who’s responsible for repairs 

• how much notice you need to give 

• what you can and can’t do in the property 

Knowing your rights can help you avoid unexpected costs, such as paying for repairs your landlord should cover. 

Consider moving somewhere cheaper  

It’s not always possible, but moving to a more affordable area, even with added travel costs, could save you money overall. 

Try comparing total costs, including rent and commuting, in different areas to see what works best for you. 

Furnish on a budget  

If your place isn’t furnished, don’t spend a fortune: 

• Check out Facebook Marketplace, Gumtree, Freecycle and LoveJunk.  

• Visit local charity shops for bargains. 

• Ask friends or family if they have anything they’re getting rid of. 

You’d be surprised how much you can get for free or cheap. 

Watch out for council tax and insurance costs  

Council tax and insurance costs often get forgotten but can really eat into your budget. The good news is that there are ways you might be able to reduce your spending in this area.  

• If you live alone, you may qualify for a 25% council tax discount. 

• If you’re a low income or benefits, you may be eligible for further council tax reductions.  

• Contents insurance doesn’t have to be expensive. Use comparison websites and tailor your policy so you’re not paying for cover you don’t need. 

Check you’re getting all the benefits you’re entitled to  

Many renters don’t realise they qualify for extra support. If you're on a low income or benefits, you might be eligible for: 

• universal credit (including a housing element) 

• local housing allowances 

• council tax reduction schemes 

If you’re not sure what you’re eligible for, use our benefits calculator to quickly check what support you should be getting.   

It’s simple, free and could boost your monthly income.