UK tenants are spending over half of their take-home salary on rent
At Home Sales and Lettings, we are experiencing record levels of tenant demand, often receiving over 120 enquiries per property, highlighting the ongoing strain on the rental market across Edinburgh and other Scottish cities. Recent figures show that around one in five tenants in the UK are now spending over half of their take-home salary on rent, according to tenant and landlord services provider Canopy.
Canopy’s index, which analyzes data from over 60,000 individual renters, shows that the average renter is now spending 36% of their take-home salary on rent. However, in certain areas, this figure exceeds 40%, a worrying indicator of affordability pressures. For Scottish cities like Edinburgh, where we operate, rental costs continue to be a significant portion of tenants’ income, with Edinburgh renters spending an average of 40.3% of their take-home salary on rent—placing it among the top ten most unaffordable cities in the UK.
While areas like the North-East of England see the lowest rental costs, with tenants there spending 33.7% of their salary on average, Edinburgh’s rental market remains tight. Despite this, the ongoing demand we’ve witnessed—especially as we often receive over 120 enquiries per property—demonstrates that tenants are competing fiercely for limited rental opportunities.
In London, where tenants pay an average of £1,183 per month, renters spend 44.5% of their income on rent. The affordability issue is most extreme in areas like Barnet and Enfield, where more than half of tenants’ income is spent on rent, leaving little room for other living expenses. Edinburgh, while slightly below this threshold, remains a challenging market for tenants.
It’s clear that rental affordability is not just a London-centric issue but one affecting major cities across the UK, including Edinburgh. At Home Sales and Lettings, we are closely monitoring market trends to ensure we provide both tenants and landlords with the support they need in these uncertain times.
As Canopy’s CEO Chris Hutchinson notes, the rental market is fragile, and potential regulatory changes could put further pressure on landlords, potentially reducing the supply of available properties.
For tenants in Edinburgh and beyond, these developments are crucial as we navigate this ever-evolving landscape.