- Paragon’s new Rental Affordability Index reveals Copeland is the most affordable place to rent in England, with 14% of annual salary is spent on rent
- North West is most affordable region to rent overall, followed by North East and Yorkshire
- Average rental affordability ratio for the whole of England is 32.8% from an annual income of £31,200
Copeland, Allerdale and Barrow-in-Furness are the most affordable locations to privately rent in England last year, Paragon Bank analysis has revealed.
Using recently published Government data, the Rental Affordability Index compares the average percentage of annual salary spent on rental payments to reveal an average rental affordability ratio.
On average, private rent in the three local authorities, all located within Cumbria, was less than 20% of the average salary of residents of those areas. Copeland topped the affordability list with the average annual rent of £6,101, equating to just 14% of the average annual salary for the town of £43,463. Annual rent prices in Allerdale equated to 17.8% of average salary, with Barrow-in-Furness at 19.6%.
Other local authorities with affordable rents included North East Lincolnshire (19.6%), Carlisle (19.7%) and Bassetlaw (19.7%).
Region |
2020 income £ |
2020 Rental £ |
Affordability ratio % |
North West |
29,960 |
7,103 |
23.7 |
North East |
27,820 |
6,669 |
24.0 |
Yorkshire & Humber |
28,680 |
6,972 |
24.3 |
East Midlands |
29,830 |
7,838 |
26.3 |
West Midlands |
30,020 |
7,921 |
26.4 |
South West |
28,710 |
9,072 |
31.6 |
East of England |
33,320 |
11,000 |
32.4 |
South East |
32,230 |
12,000 |
36.1 |
London |
37,830 |
19,000 |
51.3 |
At the other end of the scale, all of the least affordable local authorities to rent were located within London. Kensington & Chelsea topped the list, where the average rent was 98.1% of the average resident’s salary, whilst Westminster was 91.3%. Hackney (63.3%), Hammersmith & Fulham (61.1%) and Camden (61%) were the next in the least affordable list.
Across England, the average salary of £31,220 equated to 32.8% of the average rent. Regionally, the most affordable regions were all located in the north of England, with the North West coming out as the most affordable at 23.7%, followed by the North East (24%) and Yorkshire & Humber (24.3).
London (51.3%), the South East (36.1%) and East of England (32.4%) were the least affordable.
Richard Rowntree, Paragon Bank Managing Director of Mortgages, said: “These figures paint a revealing picture, with the most affordable rental locations mainly concentrated in northern areas. House prices are typically lower in these regions, meaning that rents tend to be lower. At the other end of the scale, it is not surprising to see London as home to the least affordable locations and that is why London has the highest proportion of house sharers in the UK.
“Generally, average rents have been increasing for several years and rental affordability is something landlords must be mindful of, particularly with people under more financial pressure as a result of the pandemic.”
By property type across the country, the average four-bed home equated to 56.1% of salary to rent, followed by three-bed (38.7%), two-bed (31.3%), one-bed (25.2%), studio (17.4%) and a single room (17.4%).
Top 10 most affordable areas in England
Region |
2020 income £ |
2020 Rental £ |
Affordability ratio % |
Copeland |
43,463 |
6,101 |
14.0 |
Allerdale |
33,335 |
5,948 |
17.8 |
Barrow-in-Furness |
35,139 |
6,890 |
19.6 |
North East Lincolnshire |
28,767 |
5,646 |
19.6 |
Carlisle |
29,223 |
5,750 |
19.7 |
Bassetlaw |
30,273 |
5,978 |
19.7 |
Wigan |
29,872 |
5,910 |
19.9 |
East Riding |
31,592 |
6,304 |
20.0 |
Fylde |
36,089 |
7,308 |
20.2 |
Eden |
30,707 |
6,370 |
20.7 |
Top 10 least affordable areas in England
Region |
2020 income £ |
2020 Rental £ |
Affordability ratio % |
Kensington & Chelease |
46,568 |
45,701 |
98.1 |
Westminster |
43,726 |
39,936 |
91.3 |
Hackney |
37,585 |
23,782 |
63.3 |
Hammersmith & Fulham |
41,262 |
25,200 |
61.1 |
Camden |
42,528 |
25,928 |
61.0 |
Islington |
47,120 |
26,174 |
55.5 |
Barnet |
34,999 |
18,900 |
54.0 |
Lambeth |
42,000 |
22,174 |
52.8 |
Southwark |
38,266 |
19,746 |
51.6 |
Tower Hamlets |
41,939 |
21,594 |
51.5 |