Leeds named one of the most affordable UK cities for renters
Residents of Leeds are spending around 36% of their take-home salary on rent.
That’s according to the latest rental affordability report from tenant and landlord services provider Canopy.
They analysed data on over 46,000 employed UK renters, to get an accurate view on income versus outgoings, and how this compares by city or town.
Nationwide, their new report reveals that most tenants are spending over a third (36%) of their ‘net’ or ‘take-home’ salary on rent on average, which is at the very limit of what experts believe is affordable.
The Canopy experts advise that spending around 30% of income on rent is typically within most people’s means, while 40% is at the outer limits of what many can make work.
In Leeds, residents are spending 35.5% of their salary on rent – around 0.5% less than the national average, although still a little over the recommended level.
Overall, Sunderland took the top spot in the ‘most affordable cities’ list, with a slightly lower rent to income ratio of 32.8%.
In general, the list was dominated by cities in the north of England, with Derby being the most southerly city to feature.
Three other cities in Yorkshire – Bradford, Sheffield and Hull – also made the top ten.
UK cities with the lowest rent to income ratio – net / take-home
1. Sunderland (32.8%)
2. Belfast (33.1%)
3. Newcastle (33.7%)
4. Hull (34%)
5. Derby (35.2%)
6. Sheffield (35.5%)
7. Leeds (35.5%)
8. Glasgow (35.55%)
9. Bradford (35.6%)
10. Nottingham (35.7%)
In Leeds, the average take home salary is £23,766 per year, while each tenant’s share of monthly rental payments comes to £644.
While the data shows that this may be a more affordable location overall, more than one in eight residents (13%) are still spending over half their income on rent here.
Bournemouth came out as the least affordable city overall, with tenants are spending 47% of their ‘take home’ salary on rental payments on average – around 11% more than the national average.
Brighton took second place in the table (46%), followed by London (44.3%).
The only city in the north of England to feature in the ‘least affordable’ list was Manchester, where the rent to income ratio is 37.4%.
UK cities with the highest rent to income ratio – net / take-home
1. Bournemouth (46.9%)
2. Brighton (46.3%)
3. London (44.3%)
4. Bristol (41%)
5. Edinburgh (40.6%)
6. Southampton (40.5%)
7. Cardiff (39.3%)
8. Birmingham (38.7%)
9. Leicester (38.1%)
10. Manchester (37.4%)
Chris Hutchinson, CEO at Canopy, commented: “The average tenant in the UK is now spending over a third of their take-home pay on their share of the rent; in many areas of the UK the average rises higher than 40%. It is sobering to see that some tenants are even spending 80% of their salary on rent.
“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.”