As a shocking new statistic reveals the average renter in England spends over a third of the year working to pay their landlord, campaigners are urging the government to take action to address soaring rents.
'Cost of Rent Day' for renters in England this year falls on 11 May - meaning for the previous four months and 10 days, the income of the average renter in England has gone to paying their annual rent. Cost of Rent Day shows the proportion of annual income that is swallowed up by rent, with renters 'working for themselves' after that date, and is based on rent as a proportion of income.
On average, private renters in England spend 36% of their gross income on rent according to the ONS. This year, 11th May (the 131st day) marks that point in the year. In contrast, owner occupiers with a mortgage on average spend just 19% of their income on housing costs, while social housing tenants spend 27% of their income on rent. The previous year for which affordability data is available is 2023, which has a cost of rent day of May 5th - (34% of income) meaning on average renters are working almost an extra week to cover their rent.
Cost of Rent Day falls differently in different cities depending on the relative rents and incomes in those areas - in London for example, it lands three weeks later than England, on 2nd June. The council where Rent Day falls latest in the year is Kensington and Chelsea in West London, on September 26th.
Renters' Reform Coalition research has found that nearly a third of renters (an estimated 3.8 million people) "always" or "often" struggle to afford essentials like groceries due to the amount they spend on rent, and nearly 1 in 10 have sold or pawned personal items to be able to afford rent.
Clara Collingwood, Director at the Renters' Reform Coalition, said:
"The fact that the average renter in England works for over a third of the year just to put money in their landlord’s pockets shows just how unsustainable the cost of renting has become. Skyrocketing rents are stealing months of our lives, pushing renters into poverty and preventing us from saving, putting down deposits or spending our wages on whatever matters to us. In fact, our research has found nearly a third of tenants struggle to even afford essentials due to the crippling cost of rent. And while section 21 evictions have finally been banned in England, for many renters unaffordable rent increases will have exactly the same effect, forcing people out of their homes and the lives they are building for themselves.
"Homes are the foundation of our lives, and with stakes this high the government must take decisive action to get a grip on out-of-control rents; relying on housebuilding alone won't get the job done. Meanwhile, renters are bearing the cost of government inaction."
Ben Twomey, Chief Executive of Generation Rent, said:
“Homes are the foundations of our lives. But when we are forced to spend too much of our income on rent, it means children are going to school hungry or older renters who can’t afford to turn the heating on. High rents trap people in homelessness and suck money out of local communities.
“It’s not right that over four months of our income every year is being swallowed up by landlords. While it was encouraging to see the government recognise this through its recent consideration of a rent freeze, we need to see longer-term action.
“Renters in some of our biggest cities are facing the most back breaking costs. The government must urgently give metro mayors the power to slam the brakes on soaring rents through limiting rent increases.”