Nearly half of wages now spent on rent – what to do if you’re struggling

Renters across the UK are facing record-high costs, with the average tenant now spending 44% of their income on rent, up from 40% just five years ago.

According to Rightmove, the average monthly rent outside London has risen to £1,385, while those in the capital are paying £2,736 a month.

It’s the third quarter in a row that advertised rents have hit a new record.

Rightmove warns that affordability for renters “remains very stretched”, even though average wages have risen by 5% compared to last year.

Why are rents still rising?

Several factors have pushed rents higher in recent years:

• high demand and low supply, meaning there simply aren’t enough homes available to rent
• changes in how people live and work since the pandemic have reshaped housing demand
• rising costs for landlords, such as higher mortgage rates and maintenance costs, are often being passed on to tenants

While there are 9% more rental properties available than this time last year, supply is still 23% lower than in 2019, meaning demand remains strong and prices high.

Where are rents rising fastest?

Rightmove’s data shows there are regional differences, with some areas seeing sharper increases in rent over the past year:

• Fulwood, Lancashire: up 32%
• Keighley, West Yorkshire: up 27%
• Frome, Somerset: up 27%
• Newquay, Cornwall: up 23%
• Gainsborough, Lincolnshire: up 22%

Other areas seeing rent hikes of 17% or more include Burgess Hill in West Sussex, Billericay in Essex and Paisley in Renfrewshire.

What help is available for renters?

If you’re finding rent hard to afford, there are several forms of support you may be entitled to:

Universal credit

If you’re of working age, universal credit (UC) may include extra money to help with rent and service charges. This housing element is usually included in your monthly UC payment and paid directly to your landlord.

You can also apply for additional support from your UC if you're dealing with financial hardship.

Housing benefit

If you’re over state pension age, you might qualify for housing benefit through your local council. Some people under pension age may also be eligible, particularly if they live in supported or temporary housing.

The amount you receive depends on:

• your age
• where you live
• the size of your household

Discretionary housing payment (DHP)

If your rent is already partly covered by UC or housing benefit, you may be able to get a discretionary housing payment (DHP). These are short-term payments designed to help with rent or other housing costs.

You can apply for a DHP through your local council.

Charity grants

Organisations like Turn2us can help you find and apply for grants and other financial support from charities and local community groups.

Are you struggling to pay your rent?

If you’re finding it hard to keep up with your rent, here are some steps you can take:

Use our benefits calculator to make sure you’re getting all the support you’re entitled to.

Use our budget calculator to identify where possible savings can be made and free up cash to put towards vital expenses.

We’ve also put together some useful money saving tips for people living in rented accommodation.