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North East named as most affordable region to rent in UK

Nick Cheek
Written By:
Nick Cheek
Posted:
Updated:
13/06/2023

The North East is the most affordable region to privately rent in the UK, followed by the Yorkshire and Humber region and the North West, research has found.

Figures from Paragon Bank show that rental affordability ratio, which is average earnings divided by mean rent, found that the ratio in the North East was 23.5%.

The ratio in the North East has dropped slightly in the past year by 0.2%, as mean rents have grown slightly from £6,424 to £7,054. However, earnings have also increased.

The Northe East was followed by the Yorkshire and the Humber region at 25% and North West at 25.3%.

The least affordable region was London with a ratio of 4.85%, followed by the South East at 35.9% and East of England at 33.3%.

A big disparity in regional rents

Richard Rowntree, Paragon Bank’s managing director of mortgages, said: “As we saw when we analysed these figures last year, we see stark disparity between how affordable privately rented homes are in different parts of England, the north is notably more economical than London and the South West.

“We also see how rent payments still represent a sizable proportion of monthly outgoings, the most significant in many cases. While we know that landlords often limit rent increases in order to keep good tenants and many understand the financial challenge their renters may currently face, they themselves are up against rising costs so a degree of rental inflation is unfortunately inevitable.”

He added: “Fuelling this, demand for affordable private rented sector homes has peaked over the past few years and remains well above supply. This is why it is vital that housing policy is developed in a way that promotes high standards while making investment in the private rental sector an attractive option for responsible lettings business owners.”