Rent and Credit > What Can Be Done About the Rent Affordability Crisis in the UK?

What Can Be Done About the Rent Affordability Crisis in the UK?

Wollit Team2 minute read · Updated 13th August 2025

The UK rent affordability crisis in 2025 has reached breaking point. Average rents now cost £1,287 per month, having increased by £219 over three years. With wages rising slower than rent prices, a significant and growing number of renters are now spending over half their income to pay for housing.

The situation is worse for those on lower incomes. Only a small percentage of rental properties in England are genuinely affordable for people receiving housing benefit, highlighting a drop in options for the most vulnerable.

Understanding the Crisis

The fundamental problem is supply and demand. There simply aren't enough rental properties available. The UK needs 300,000 new homes annually but consistently falls short of this target.

Meanwhile, many landlords are leaving the market due to higher costs and increased regulations. A significant number are considering selling their properties within five years, further reducing available rentals.

Most young people can’t afford homes. Only 10% of renters aged 20-44 can afford to buy, meaning they remain in the rental market longer than previous generations.

What the Government Is Doing

The government has introduced several measures to help, though their impact remains limited:

The Renters' Rights Bill will ban unfair evictions and give tenants more protection. However, housing benefit rates are frozen until 2026, which means the support isn't keeping up with actual rent costs.

There are plans to build 1.5 million new homes, including 90,000 social homes per year under the current government. But building new homes takes time, so this won't provide immediate relief and the target hasn’t been met yet.

What You Can Do Right Now

While waiting for bigger changes, there are practical steps you can take:

Check your affordability - Use an affordability check to understand what rent you can realistically manage without compromising other essential expenses.

Build your credit score - A better credit score makes you more attractive to landlords and could help you access better rental opportunities. Consider using Wollit to improve your financial profile over time.

Know your budget - Understanding how much rent you can afford based on your income helps prevent overcommitting financially.

Research thoroughly - Look at different areas and property types to find the best value for money.

Save for emergencies - Try to build a small emergency fund to handle unexpected costs or rent increases.

Know your rights - Understand what landlords can and cannot do regarding rent increases and evictions.

Regional Differences Matter

Rent affordability varies across the UK. London remains the most expensive, with average rents of £2,698 per month. However, even traditionally cheaper areas are seeing significant increases.

Cities like Bristol, Leeds, and Manchester are experiencing particular pressure as they attract workers but haven't built enough new homes to keep up with demand.

Will Rents Come Down?

Unfortunately, most experts don't expect UK rent prices to fall in 2025. However, the rate of increase is starting to slow as rents hit what's called an "affordability ceiling" - the point where people simply can't pay more.

This slowdown in rent growth offers some hope, but renters will still be spending a higher proportion of their income on housing than at any point in the last 18 years.

Looking Ahead

The rent affordability crisis won't be solved overnight. It requires building more homes, particularly affordable social housing, and ensuring wages keep pace with housing costs.

For individual renters, focusing on financial health and preparation is key. Building a strong credit profile, understanding your budget, and staying informed about your rights can help you navigate this challenging market.

The Bottom Line

The UK rent affordability crisis is real and affecting millions of people. While government action on housing supply will take years to make a difference, renters can take immediate steps to strengthen their financial position and make better housing decisions.

The key is being proactive about your finances, understanding what you can afford, and building the strongest possible financial profile for when better opportunities arise.