UK rent affordability worsens as tenants spend 39% of income on housing, impacting savings and daily living costs.

London and the South East face the most acute shortages of affordable housing as rents continue to rise faster than earnings.

Average UK monthly private rent is now £1,360, up 5% in a year.

First-time buyer activity rose around 20% compared to 2024, with high loan-to-value lending reaching its highest level in over a decade.

Precise has increased the LTV on new build properties and those with Tier 4 adverse histories.

Wage growth of 4.7% is forecast for 2026, outpacing the projected 2.9% increase in house prices and continuing the trend of improving affordability.

Scotland claims seven of the ten most affordable UK towns, whilst eight of the ten least affordable towns are located in the South East of England.

Average homes in England now cost 7.7 times the median salary.

London rents have risen 37% over the past five years, reaching £995 per month in Q3 2025.

A fifth of would-be buyers are unaware of any support schemes, according to the latest Shawbrook research.