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Report shows 11% of tenants paying 60% of their income as rent

A new report based on data from 46,000 renters reveals shocking data on how much they are spending on their rent.

The latest rental affordability index from tenant and landlord services provider Canopy, found that while on average tenants are spending 36% of their take-home pay on rent, one-in-five spend at least half their pay on rent, 11% spend over 60% and 4.4% spend over 80%.

While these figures will spur many renters campaign groups to call for Government action, the index also shows that 11% of renters spend less than 20% of their take-home pay on rent on average and in Darlington the figure is 28%.

The UK city with the highest rent-to-income ratio is Bournemouth at 46.9% followed by tenants in Brighton (46.3%) and London (44.3%).

Edinburgh (40.6%) also makes the top five list for the most unaffordable cities for renters.

Last month Generation Rent said rents for new tenancies had increased by 33% over the past three years while wages rose by just 19%, saying that: “Too many landlords are pushing tenants out in order to maximise their rental income. The next government must limit rent increases to the lower of wage growth and consumer price inflation (CPI).”

Chris Hutchinson (pictured) CEO at Canopy, says: “Considering these numbers don’t include essentials like groceries, commuting costs and utilities bills, the figures raise serious questions on how feasible saving for a mortgage is for the majority of tenants in this country.

“What is clear is that the market is in a precarious position, in that steps clearly need to be taken to make life easier for tenants, yet further regulation is likely to drive landlords away from the market and leave a smaller pool of properties available for tenants to choose from.”

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Rent rise

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