Brighton named second least affordable UK city for renters

Brighton has been named the second least affordable city for renters in the UK.

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.

In Brighton specifically, tenants are spending 46.3% of their ‘take home’ salary on rental payments on average – around 10% more than the national average.

Overall, Bournemouth took the top spot in the ‘least affordable’ cities list, with a high rent to income ratio of 46.9%. Brighton took the second-place position, London took third place.

While London’s average income is much higher than in many other cities, high property prices still mean that tenants in the capital are spending on average 44.3% of their take-home salary on rent – putting it in third place in the least affordable cities list.

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%)

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.

Across the country, a worrying one in five UK tenants (19%) are now spending at least half of their take-home pay on rent, and for one in 20 (4.4%) their rent eats up over 80% of their salary.

In Brighton specifically, this is even higher – a quarter (26%) residents are spending over half of their salary on their rent, and one in twelve (8%) see 80% of their income go to their landlord.

The average tenant in Brighton spends £868 per month on their share of the rent, while average income (after taxes) is £24,929 per year.

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%)

Sunderland has been named the most affordable major city for renters in the UK, with the average tenant here spending a third of their take-home salary on rental payments (32.8%).

Belfast was the second most affordable UK city to rent in (33.1%) followed by Newcastle (33.7%).

This is still higher than the recommended 30% threshold though.

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.”