London Daily

Focus on the big picture.
Thursday, Mar 12, 2026

Growing share of under-30s pay unaffordable rent

Growing share of under-30s pay unaffordable rent

People under 30 are facing a brewing cost-of-living crisis, new figures shared with the BBC suggest.

A growing share of young renters are signing new contracts that exceed 30% of their pay, according to the data - a five-year high.

Housing groups say spending more than 30% of pay on rent is unaffordable.

While London has the highest rents, affordability has worsened in towns such as Rotherham and Bolton for young people since the pandemic.

The data suggests under-30s spend more of their earnings on rent than other working age groups. The figures cover 150,000 young people and were supplied by property market consultancy Dataloft.

Megan Stephens and Richard Stranks, from London, had their rent put up from half their wages to two-thirds of them.

"We were not expecting such a big increase… that was the real punch in the gut," said Mr Stranks.

Amid rapidly rising rents and a fall in real incomes, younger people's finances are being squeezed.


Under-30s are less likely to have dependents and are sometimes more willing to move around, so could feel able to pay higher rents, experts told the BBC.

But Nick Gallent, a professor of housing and planning at University College London, warned that young people being locked into expensive renting now could cause future problems, as "their lives evolve but they need to live with instability and insecurity".

Young renters faced a difficult winter, he said, amid rising inflation and energy bills, describing the situation as "horrendous".

"Despite all the economic problems, house prices and rents continue to nudge upwards," he said.


How do places compare?


In one in six local authorities across England, Wales and Scotland for which there was enough data, the majority of young renters were spending more than 30% of their earnings on their housing, according to analysis of Dataloft figures for the year to the end of June.


The least affordable areas for young people are concentrated in London. However, many of the places where rent affordability has dropped the most since the Covid pandemic are in towns like Rotherham, Bolton, Salford, Walsall and Dudley.


What is driving up rents?


Elton Papri, a lettings manager at a Dudley-based branch of estate agent Shipways, said under 30s were "struggling at the moment" as there were not enough homes on the market.

Renters were being pushed to offer over the asking price as people were bidding more than the listed price just to secure a property.

"They shouldn't be offering £100 more if they cannot meet that requirement, but then if they don't they are going to miss out on that property so it's a hard situation," said Mr Papri.

Lettings manager Elton Papri, 30, found it difficult to find somewhere to rent for himself


The trade body for estate agents, Propertymark, said rents were increasing due to fewer houses being on the market.

This was because many landlords have decided to sell properties because of rising taxes, charges and maintenance costs, it said.

Danisha Kazi, senior economist at research and campaign group Positive Money, said underlying structural features in the market were also to blame.

"Supply shortage is not a good enough explanation because it's a long-term trend - rent as a proportion of income has been rising since the 1980s for all age groups, with younger cohorts particularly hit hard," she said.

She said housing policy reforms since the 1980s, including an end to rent controls, making evictions easier and the introduction of Right-to-Buy, had significantly shifted the balance of power from tenants to landlords.

"We also don't have alternatives and people are heavily dependent on the private rental sector, which has doubled in size since the early 2000s," she said.


Move out


London couple Ms Stephens and Mr Stranks decided to move out of their house-share last June, as they felt like they had no alternative.

"My income did grow a little bit, but not by as much as the landlord increased the price," said Ms Stephens.

The couple have now found cheaper accommodation as property guardians of a former local authority office block in Newham, east London.

They may have to move out with a month's notice, but they said the move was an easy decision.

"It means that I can save, and that's a big thing for me" says Ms Stephens.

Housing campaigners Generation Rent warned the situation for younger renters was "dire" and called for the government to freeze rents and pause evictions.

The Ministry of Housing said it recognised people were facing cost-of-living pressures and that paying rent was likely to be a tenant's biggest monthly expense.

"That is why we have taken action through our £37bn support package to help households with rising costs," it said.

The government also said that its plans announced in June would provide renters with a "fairer deal".

The proposals would ban landlords from evicting tenants in England without giving them a reason, and give renters more power to challenge unjustified rent increases and poor conditions.


More about the data


The analysis of renters under 30 years old for the year to the end of June 2022 is based on records from 150,000 tenants collected by major tenant referencing companies and aggregated by Dataloft.

It excludes income outliers, including those earning less than £10,000 because they are likely to be supported by other sources of income or by guarantors.

Across all the age groups, Dataloft has data for over 400,000 records for the year to the end of June and estimates it covers 40% of the rental market in England, Scotland and Wales.

Many housing organisations regard spending more than 30% of gross income to be unaffordable and the Office for National Statistics has also used the benchmark in its affordability analysis.

Newsletter

Related Articles

0:00
0:00
Close
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
×