Average rents are not ‘affordable’ in 30% of local authorities in England and Wales, official figures for the year to the end of March 2023 show.
According to the Office for National Statistics, this means that renters on average household incomes in these locations would need to spend more than 30% of this to cover the average private rent.
However, the number of municipalities where average private rental costs meet the definition of ‘affordable’ was at the highest level since 2015: 233 out of 334 municipalities (70%).
Across England, renters on average household incomes would need to spend 34.2% of this to cover the average private rent.
The average monthly rent for tenants of private homes across England is £1,178, compared to an average monthly household income of £3,448, according to the data.
In Wales, affordability is better, with average private rents at 27.2% of the average household income.
Monthly rents for private homes in Wales average £667, compared to an average monthly household income of £2,452.
The figures paint a somewhat confusing picture, as the average rent in England is 34.2% above the level considered affordable, despite the majority of local authorities in England and Wales having average rents considered affordable considered.
ONS statisticians explain that this is partly due to the huge variation in the size and population of different local authorities.
London also distorts the national average.
In the capital, average rents were 39.8% of income according to the latest data, but have fluctuated between this figure and as much as 57.2% since 2015.
In other regions, rents have remained above 20% of income, but rarely above 35%.
The ONS says that while private rents in England and Wales have risen over the past decade, incomes have risen faster, leaving affordability ratios at broadly similar levels to 2015, according to the latest data.
For the first time based on the latest data, the ONS can estimate the affordability of private renting at local authority level.
It found that North Lincolnshire is the most affordable government area, with rents accounting for just 18.8% of income.
The least affordable government area is Kensington and Chelsea, where average rents are 52.2% of median income.
The LAs with the least ‘affordable’ average rents in any region in 2023 were those in urban centers such as London, Manchester, Brighton and Hove, Bristol and Bath.