Home Renting 61% of Britain is still affordable for Generation Rent

61% of Britain is still affordable for Generation Rent

By
Russell Quirk
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61% of Britain is still affordable for Generation Rent

The latest research by lettings management platform, Howsy, has revealed that 61% of Britain still remains within the boundaries of affordability for the nation’s younger renters. 

Howsy looked at the cost of renting across each local authority of England, Scotland and Wales coupled with the average salary for 22-29-year-olds in that region. Howsy then looked at what percentage of income is swallowed up by financial rental requirements and where remains the most realistic for renters. 

The research shows that across Britain the average rent of £843 per month accounts for 51% of the average salary of £1,639. However, there are a total of five areas where rent accounts for over 100% of the average salary, four of which are located in London. 

But the difference between 99% of salary spent on renting and 100% doesn’t make an area affordable for tenants and in fact, affordability starts to become an issue once the cost of rent exceeds 50% of your salary. 

With this in mind, Howsy then looked at where across the nation the average monthly rent accounted for 50% or less of earnings and found that on this basis, 61% of areas were still home to an affordable rental market for the younger generation. 

The best of the bunch is Rhondda Cynon Taf in Wales, with just 28% of income required to cover rental costs, along with Blaenau Gwent. 

At 30%, Burnley is the most affordable market for young renters in England and the North West, while in Scotland, Dumfries and Galloway is the most affordable and ranks eight overall at 31%. 

Barnsley also makes the top 10 and is the most affordable in the Yorkshire and the Humber region at 32%, along with Bolsover which ranks as the best option in the East Midlands.

South Tyneside is top in the North East (33%), while Waveney is the most affordable in the East of England (34%), with Staffordshire Moorlands the most affordable in the West Midlands (35%).

Folkestone and Hythe is the South East’s most affordable rental market, with Torridge in the South West still just about affordable at 40%. Predictably, the cheapest area in London falls outside of the 50% affordability threshold, with Bexley coming in at 52%.

Founder and CEO of Howsy, Calum Brannan, commented:

“A lack of wage growth to keep pace with the increasing cost of renting is resulting in more of the nation’s tenants paying above the fifty per cent affordability threshold when it comes to the proportion of salary spent on rent. 

However, despite the government’s attempts to dampen the financial return of buy-to-let landlords through a number of financial penalties including a ban on tenant fees, an increase in stamp duty and a reduction in buy-to-let tax incentives, we haven’t seen the knee-jerk spike in rents that many predicted. 

We believe it is important to be innovative with solutions to ensure that the rental market is open to as many people as possible. Products such as Howsy Club turn the tradition of the high up-front deposit on its head, wiping out a high cost that, along with monthly rent, can be a big barrier many tenants getting their foot on the rental ladder. 

Of course, affordability is always going to be a problem in some areas, but a vast majority of areas in Britain still remain realistic as rental locations for the nation’s youngest tenants.”

Rent to income ratio in the most affordable rental locations in each region of Britain
Location Region Monthly NET pay (age group 22-29) Average monthly rent (2019) Overall – Rent as proportion of net salary
Rhondda Cynon Taf WALES £1,478 £419 28%
Burnley NORTH WEST £1,560 £462 30%
Dumfries and Galloway SCOTLAND £1,584 £490 31%
Barnsley YORKSHIRE AND THE HUMBER £1,531 £494 32%
Bolsover EAST MIDLANDS £1,562 £494 32%
South Tyneside NORTH EAST £1,503 £498 33%
Waveney EAST OF ENGLAND £1,637 £557 34%
Staffordshire Moorlands WEST MIDLANDS £1,546 £536 35%
Folkestone and Hythe SOUTH EAST £1,665 £645 39%
Torridge SOUTH WEST £1,548 £612 40%
Bexley LONDON £2,137 £1,106 52%
Rent to income ratio in the all locations in Britain
Location Region Monthly NET pay (age group 22-29) Average monthly rent (2019) Overall – Rent as proportion of net salary
Rhondda Cynon Taf WALES £1,478 £419 28%
Blaenau Gwent WALES £1,478 £411 28%
Burnley NORTH WEST £1,560 £462 30%
Powys WALES £1,478 £462 31%
Carlisle NORTH WEST £1,560 £487 31%
Pendle NORTH WEST £1,560 £483 31%
Carmarthenshire WALES £1,478 £458 31%
Dumfries and Galloway SCOTLAND £1,584 £490 31%
Hyndburn NORTH WEST £1,560 £476 31%
Barnsley YORKSHIRE AND THE HUMBER £1,531 £494 32%
Merthyr Tydfil WALES £1,478 £472 32%
Pembrokeshire WALES £1,478 £471 32%
Neath Port Talbot WALES £1,478 £469 32%
Bolsover EAST MIDLANDS £1,562 £494 32%
North Lanarkshire SCOTLAND £1,584 £528 33%
East Ayrshire SCOTLAND £1,584 £528 33%
North Ayrshire SCOTLAND £1,584 £528 33%
South Ayrshire SCOTLAND £1,584 £528 33%
Rotherham YORKSHIRE AND THE HUMBER £1,531 £510 33%
Isle of Anglesey WALES £1,478 £490 33%
Allerdale NORTH WEST £1,560 £517 33%
South Tyneside NORTH EAST £1,503 £498 33%
Mansfield EAST MIDLANDS £1,562 £516 33%
Gwynedd WALES £1,478 £488 33%
Wigan NORTH WEST £1,560 £514 33%
Torfaen WALES £1,478 £486 33%
Doncaster YORKSHIRE AND THE HUMBER £1,531 £503 33%
East Lindsey EAST MIDLANDS £1,562 £513 33%
Copeland NORTH WEST £1,560 £511 33%
Sunderland NORTH EAST £1,503 £517 34%
Rossendale NORTH WEST £1,560 £536 34%
Ceredigion WALES £1,478 £507 34%
Liverpool NORTH WEST £1,560 £532 34%
St. Helens NORTH WEST £1,560 £531 34%
Waveney EAST OF ENGLAND £1,637 £557 34%
Barrow-in-Furness NORTH WEST £1,560 £530 34%
Scarborough YORKSHIRE AND THE HUMBER £1,531 £517 34%
Calderdale YORKSHIRE AND THE HUMBER £1,531 £517 34%
Rochdale NORTH WEST £1,560 £526 34%
Caerphilly WALES £1,478 £498 34%
Ashfield EAST MIDLANDS £1,562 £525 34%
Gateshead NORTH EAST £1,503 £531 35%
Bassetlaw EAST MIDLANDS £1,562 £551 35%
West Lindsey EAST MIDLANDS £1,562 £550 35%
Denbighshire WALES £1,478 £518 35%
Scottish Borders SCOTLAND £1,584 £552 35%
Chesterfield EAST MIDLANDS £1,562 £543 35%
Bridgend WALES £1,478 £513 35%
Staffordshire Moorlands WEST MIDLANDS £1,546 £536 35%
Great Yarmouth EAST OF ENGLAND £1,637 £566 35%
High Peak EAST MIDLANDS £1,562 £570 36%
Newport WALES £1,478 £539 36%
Newark and Sherwood EAST MIDLANDS £1,562 £569 36%
Wrexham WALES £1,478 £537 36%
Cannock Chase WEST MIDLANDS £1,546 £559 36%
Preston NORTH WEST £1,560 £564 36%
Wakefield YORKSHIRE AND THE HUMBER £1,531 £548 36%
Tameside NORTH WEST £1,560 £558 36%
Kirklees YORKSHIRE AND THE HUMBER £1,531 £546 36%
Charnwood EAST MIDLANDS £1,562 £556 36%
Argyll and Bute SCOTLAND £1,584 £594 37%
Swansea WALES £1,478 £552 37%
Lincoln EAST MIDLANDS £1,562 £581 37%
Wolverhampton WEST MIDLANDS £1,546 £573 37%
West Lancashire NORTH WEST £1,560 £578 37%
Bolton NORTH WEST £1,560 £578 37%
Dudley WEST MIDLANDS £1,546 £572 37%
Walsall WEST MIDLANDS £1,546 £572 37%
Wyre NORTH WEST £1,560 £577 37%
Lancaster NORTH WEST £1,560 £576 37%
Wirral NORTH WEST £1,560 £576 37%
Oldham NORTH WEST £1,560 £573 37%
Knowsley NORTH WEST £1,560 £572 37%
Eden NORTH WEST £1,560 £570 37%
Sefton NORTH WEST £1,560 £570 37%
Bradford YORKSHIRE AND THE HUMBER £1,531 £559 37%
Richmondshire YORKSHIRE AND THE HUMBER £1,531 £587 38%
South Ribble NORTH WEST £1,560 £598 38%
Sandwell WEST MIDLANDS £1,546 £589 38%
Fenland EAST OF ENGLAND £1,637 £623 38%
North Tyneside NORTH EAST £1,503 £571 38%
Nuneaton and Bedworth WEST MIDLANDS £1,546 £587 38%
Chorley NORTH WEST £1,560 £592 38%
Amber Valley EAST MIDLANDS £1,562 £591 38%
Corby EAST MIDLANDS £1,562 £591 38%
Erewash EAST MIDLANDS £1,562 £588 38%
Flintshire WALES £1,478 £582 39%
Perth and Kinross SCOTLAND £1,584 £624 39%
East Renfrewshire SCOTLAND £1,584 £623 39%
Inverclyde SCOTLAND £1,584 £623 39%
Renfrewshire SCOTLAND £1,584 £623 39%
Highland SCOTLAND £1,584 £618 39%
Na h-Eileanan Siar SCOTLAND £1,584 £618 39%
Orkney Islands SCOTLAND £1,584 £618 39%
Shetland Islands SCOTLAND £1,584 £618 39%
Folkestone and Hythe SOUTH EAST £1,665 £645 39%
Wyre Forest WEST MIDLANDS £1,546 £598 39%
Fylde NORTH WEST £1,560 £601 39%
Boston EAST MIDLANDS £1,562 £602 39%
North East Derbyshire EAST MIDLANDS £1,562 £602 39%
North Norfolk EAST OF ENGLAND £1,637 £663 40%
Ipswich EAST OF ENGLAND £1,637 £663 40%
Selby YORKSHIRE AND THE HUMBER £1,531 £619 40%
Stafford WEST MIDLANDS £1,546 £625 40%
Bury NORTH WEST £1,560 £627 40%
West Dunbartonshire SCOTLAND £1,584 £630 40%
Fife SCOTLAND £1,584 £629 40%
Conwy WALES £1,478 £587 40%
South Lanarkshire SCOTLAND £1,584 £628 40%
East Staffordshire WEST MIDLANDS £1,546 £612 40%
Hastings SOUTH EAST £1,665 £659 40%
South Holland EAST MIDLANDS £1,562 £618 40%
Craven YORKSHIRE AND THE HUMBER £1,531 £605 40%
Torridge SOUTH WEST £1,548 £612 40%
Hambleton YORKSHIRE AND THE HUMBER £1,531 £635 41%
Hinckley and Bosworth EAST MIDLANDS £1,562 £648 41%
Melton EAST MIDLANDS £1,562 £645 41%
Forest of Dean SOUTH WEST £1,548 £639 41%
King’s Lynn and West Norfolk EAST OF ENGLAND £1,637 £675 41%
North Devon SOUTH WEST £1,548 £637 41%
Sheffield YORKSHIRE AND THE HUMBER £1,531 £629 41%
Dover SOUTH EAST £1,665 £680 41%
North Kesteven EAST MIDLANDS £1,562 £637 41%
Broxtowe EAST MIDLANDS £1,562 £636 41%
Thanet SOUTH EAST £1,665 £701 42%
Ryedale YORKSHIRE AND THE HUMBER £1,531 £641 42%
Gedling EAST MIDLANDS £1,562 £651 42%
Angus SCOTLAND £1,584 £660 42%
Dundee City SCOTLAND £1,584 £660 42%
West Lothian SCOTLAND £1,584 £659 42%
Newcastle-under-Lyme WEST MIDLANDS £1,546 £670 43%
Monmouthshire WALES £1,478 £641 43%
Tamworth WEST MIDLANDS £1,546 £669 43%
South Derbyshire EAST MIDLANDS £1,562 £675 43%
Weymouth and Portland SOUTH WEST £1,548 £666 43%
South Somerset SOUTH WEST £1,548 £666 43%
West Somerset SOUTH WEST £1,548 £666 43%
South Kesteven EAST MIDLANDS £1,562 £671 43%
Clackmannanshire SCOTLAND £1,584 £677 43%
Falkirk SCOTLAND £1,584 £677 43%
Stirling SCOTLAND £1,584 £677 43%
Vale of Glamorgan WALES £1,478 £631 43%
Kettering EAST MIDLANDS £1,562 £667 43%
Worcester WEST MIDLANDS £1,546 £658 43%
Breckland EAST OF ENGLAND £1,637 £697 43%
Gloucester SOUTH WEST £1,548 £659 43%
Coventry WEST MIDLANDS £1,546 £657 43%
Wellingborough EAST MIDLANDS £1,562 £695 44%
North West Leicestershire EAST MIDLANDS £1,562 £694 44%
Taunton Deane SOUTH WEST £1,548 £686 44%
Mid Devon SOUTH WEST £1,548 £683 44%
North Warwickshire WEST MIDLANDS £1,546 £681 44%
South Lakeland NORTH WEST £1,560 £687 44%
Sedgemoor SOUTH WEST £1,548 £681 44%
Ribble Valley NORTH WEST £1,560 £684 44%
West Devon SOUTH WEST £1,548 £679 44%
Suffolk Coastal EAST OF ENGLAND £1,637 £713 44%
Redditch WEST MIDLANDS £1,546 £673 44%
Babergh EAST OF ENGLAND £1,637 £742 45%
Derbyshire Dales EAST MIDLANDS £1,562 £703 45%
Tendring EAST OF ENGLAND £1,637 £736 45%
Mid Suffolk EAST OF ENGLAND £1,637 £736 45%
Newcastle upon Tyne NORTH EAST £1,503 £674 45%
Broadland EAST OF ENGLAND £1,637 £760 46%
Aberdeen City SCOTLAND £1,584 £735 46%
Aberdeenshire SCOTLAND £1,584 £735 46%
Moray SCOTLAND £1,584 £735 46%
Rushcliffe EAST MIDLANDS £1,562 £721 46%
Stroud SOUTH WEST £1,548 £714 46%
Blaby EAST MIDLANDS £1,562 £720 46%
Malvern Hills WEST MIDLANDS £1,546 £709 46%
Teignbridge SOUTH WEST £1,548 £708 46%
South Norfolk EAST OF ENGLAND £1,637 £747 46%
Gosport SOUTH EAST £1,665 £759 46%
Northampton EAST MIDLANDS £1,562 £712 46%
Bromsgrove WEST MIDLANDS £1,546 £734 47%
Stockport NORTH WEST £1,560 £739 47%
Salford NORTH WEST £1,560 £735 47%
Oadby and Wigston EAST MIDLANDS £1,562 £735 47%
South Staffordshire WEST MIDLANDS £1,546 £727 47%
Birmingham WEST MIDLANDS £1,546 £724 47%
Rugby WEST MIDLANDS £1,546 £724 47%
Lichfield WEST MIDLANDS £1,546 £749 48%
Eastbourne SOUTH EAST £1,665 £793 48%
Tewkesbury SOUTH WEST £1,548 £766 49%
Ashford SOUTH EAST £1,665 £821 49%
Norwich EAST OF ENGLAND £1,637 £805 49%
Mendip SOUTH WEST £1,548 £760 49%
Swale SOUTH EAST £1,665 £816 49%
Harborough EAST MIDLANDS £1,562 £765 49%
Wychavon WEST MIDLANDS £1,546 £755 49%
East Devon SOUTH WEST £1,548 £753 49%
Huntingdonshire EAST OF ENGLAND £1,637 £826 50%
Rother SOUTH EAST £1,665 £835 50%
South Hams SOUTH WEST £1,548 £776 50%
Worthing SOUTH EAST £1,665 £832 50%
North Dorset SOUTH WEST £1,548 £771 50%
Cardiff WALES £1,478 £733 50%
East Dunbartonshire SCOTLAND £1,584 £811 51%
Daventry EAST MIDLANDS £1,562 £797 51%
Arun SOUTH EAST £1,665 £847 51%
Colchester EAST OF ENGLAND £1,637 £829 51%
Braintree EAST OF ENGLAND £1,637 £828 51%
Leeds YORKSHIRE AND THE HUMBER £1,531 £774 51%
East Northamptonshire EAST MIDLANDS £1,562 £790 51%
Cheltenham SOUTH WEST £1,548 £811 52%
Maidstone SOUTH EAST £1,665 £871 52%
Eastleigh SOUTH EAST £1,665 £870 52%
St Edmundsbury EAST OF ENGLAND £1,637 £854 52%
Rushmoor SOUTH EAST £1,665 £866 52%
Havant SOUTH EAST £1,665 £865 52%
Bexley LONDON £2,137 £1,106 52%
West Dorset SOUTH WEST £1,548 £826 53%
Purbeck SOUTH WEST £1,548 £825 53%
Croydon LONDON £2,137 £1,136 53%
Manchester NORTH WEST £1,560 £822 53%
Canterbury SOUTH EAST £1,665 £876 53%
Gravesham SOUTH EAST £1,665 £902 54%
Warwick WEST MIDLANDS £1,546 £830 54%
East Cambridgeshire EAST OF ENGLAND £1,637 £899 55%
Fareham SOUTH EAST £1,665 £914 55%
Stevenage EAST OF ENGLAND £1,637 £898 55%
Maldon EAST OF ENGLAND £1,637 £897 55%
Havering LONDON £2,137 £1,169 55%
Sutton LONDON £2,137 £1,167 55%
Adur SOUTH EAST £1,665 £908 55%
Aylesbury Vale SOUTH EAST £1,665 £934 56%
Barking and Dagenham LONDON £2,137 £1,194 56%
Glasgow City SCOTLAND £1,584 £883 56%
Harrogate YORKSHIRE AND THE HUMBER £1,531 £853 56%
Stratford-on-Avon WEST MIDLANDS £1,546 £860 56%
Basingstoke and Deane SOUTH EAST £1,665 £925 56%
Harlow EAST OF ENGLAND £1,637 £939 57%
Cherwell SOUTH EAST £1,665 £951 57%
Trafford NORTH WEST £1,560 £883 57%
North Hertfordshire EAST OF ENGLAND £1,637 £955 58%
East Hampshire SOUTH EAST £1,665 £969 58%
Solihull WEST MIDLANDS £1,546 £896 58%
New Forest SOUTH EAST £1,665 £965 58%
South Northamptonshire EAST MIDLANDS £1,562 £903 58%
Crawley SOUTH EAST £1,665 £990 59%
Hillingdon LONDON £2,137 £1,270 59%
Chichester SOUTH EAST £1,665 £989 59%
Chelmsford EAST OF ENGLAND £1,637 £972 59%
Wealden SOUTH EAST £1,665 £983 59%
East Dorset SOUTH WEST £1,548 £935 60%
Dartford SOUTH EAST £1,665 £1,003 60%
Castle Point EAST OF ENGLAND £1,637 £985 60%
Lewes SOUTH EAST £1,665 £998 60%
Basildon EAST OF ENGLAND £1,637 £979 60%
Test Valley SOUTH EAST £1,665 £994 60%
Wycombe SOUTH EAST £1,665 £1,024 61%
Enfield LONDON £2,137 £1,310 61%
Waltham Forest LONDON £2,137 £1,309 61%
Vale of White Horse SOUTH EAST £1,665 £1,016 61%
Rochford EAST OF ENGLAND £1,637 £992 61%
Mid Sussex SOUTH EAST £1,665 £1,040 62%
South Cambridgeshire EAST OF ENGLAND £1,637 £1,022 62%
Lewisham LONDON £2,137 £1,324 62%
Bromley LONDON £2,137 £1,321 62%
Cotswold SOUTH WEST £1,548 £956 62%
Redbridge LONDON £2,137 £1,318 62%
Christchurch SOUTH WEST £1,548 £955 62%
Forest Heath EAST OF ENGLAND £1,637 £1,038 63%
East Hertfordshire EAST OF ENGLAND £1,637 £1,029 63%
West Oxfordshire SOUTH EAST £1,665 £1,042 63%
Uttlesford EAST OF ENGLAND £1,637 £1,048 64%
Watford EAST OF ENGLAND £1,637 £1,043 64%
Hart SOUTH EAST £1,665 £1,086 65%
Horsham SOUTH EAST £1,665 £1,086 65%
Kingston upon Thames LONDON £2,137 £1,390 65%
Tunbridge Wells SOUTH EAST £1,665 £1,083 65%
Broxbourne EAST OF ENGLAND £1,637 £1,061 65%
Harrow LONDON £2,137 £1,407 66%
Greenwich LONDON £2,137 £1,404 66%
Tonbridge and Malling SOUTH EAST £1,665 £1,092 66%
Hounslow LONDON £2,137 £1,432 67%
Welwyn Hatfield EAST OF ENGLAND £1,637 £1,092 67%
Surrey Heath SOUTH EAST £1,665 £1,110 67%
Newham LONDON £2,137 £1,424 67%
Ealing LONDON £2,137 £1,463 68%
City of Edinburgh SCOTLAND £1,584 £1,084 68%
East Lothian SCOTLAND £1,584 £1,084 68%
Midlothian SCOTLAND £1,584 £1,084 68%
Reigate and Banstead SOUTH EAST £1,665 £1,138 68%
Brentwood EAST OF ENGLAND £1,637 £1,119 68%
Dacorum EAST OF ENGLAND £1,637 £1,115 68%
Spelthorne SOUTH EAST £1,665 £1,142 69%
Exeter SOUTH WEST £1,548 £1,084 70%
Winchester SOUTH EAST £1,665 £1,158 70%
Barnet LONDON £2,137 £1,523 71%
Waverley SOUTH EAST £1,665 £1,203 72%
Brent LONDON £2,137 £1,535 72%
Merton LONDON £2,137 £1,530 72%
Haringey LONDON £2,137 £1,558 73%
South Oxfordshire SOUTH EAST £1,665 £1,208 73%
Tandridge SOUTH EAST £1,665 £1,255 75%
Runnymede SOUTH EAST £1,665 £1,253 75%
Woking SOUTH EAST £1,665 £1,271 76%
Southwark LONDON £2,137 £1,654 77%
Mole Valley SOUTH EAST £1,665 £1,288 77%
Cambridge EAST OF ENGLAND £1,637 £1,253 77%
St Albans EAST OF ENGLAND £1,637 £1,298 79%
Epsom and Ewell SOUTH EAST £1,665 £1,314 79%
Hertsmere EAST OF ENGLAND £1,637 £1,302 80%
Epping Forest EAST OF ENGLAND £1,637 £1,326 81%
Sevenoaks SOUTH EAST £1,665 £1,371 82%
Lambeth LONDON £2,137 £1,754 82%
Three Rivers EAST OF ENGLAND £1,637 £1,357 83%
Tower Hamlets LONDON £2,137 £1,803 84%
Guildford SOUTH EAST £1,665 £1,431 86%
Hackney LONDON £2,137 £1,834 86%
Chiltern SOUTH EAST £1,665 £1,426 86%
Richmond upon Thames LONDON £2,137 £1,857 87%
Wandsworth LONDON £2,137 £1,883 88%
Islington LONDON £2,137 £1,914 90%
South Bucks SOUTH EAST £1,665 £1,509 91%
Oxford SOUTH EAST £1,665 £1,509 91%
Hammersmith and Fulham LONDON £2,137 £2,117 99%
Elmbridge SOUTH EAST £1,665 £1,784 107%
City of London LONDON £2,137 £2,446 114%
Camden LONDON £2,137 £2,536 119%
Westminster LONDON £2,137 £3,018 141%
Kensington and Chelsea LONDON £2,137 £3,053 143%
Great Britain N/A £1,639 £843 51%
Sources
Average earnings
Salary by region for 22-29 year olds ONS
Average rents
England Gov.uk
Scotland Gov.scot
Wales Gov.wales
50/30/20 Rule
Saving affordability Investopedia

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