Affordability ratios press coverage
We recently worked with a team of journalists from BBC News to provide in-depth analysis of the UK rental market. We calculated ‘affordability ratios’ for towns and cities across the nation. An affordability ratio is a measure of how much of their income a renter spends on their rent.
Dataloft holds the UK’s largest dataset of rents achieved and renter demographics, dating back to 2015 and covering around 40% of all rentals. With this, we are able to calculate affordability ratios based on individual renters’ incomes and rents. This is far more accurate than the usual ratios quoted in the press which are based on average rents for an area and average earnings for all residents whether renters, owners or other tenures.
Key themes
People under 30 are facing a growing cost-of-renting crisis
Four in 10 of this age group now spend more than 30% of their pay on rent. A five-year high.
While London had the highest rents, affordability has worsened in towns such as Rotherham and Bolton for young people since the pandemic.
Figures cover 150,000 young people and were supplied by Dataloft.
The article received a million page views on the BBC News website after day one.
BBC News
Growing share of under-30s pay unaffordable rent.
The headline research featured on TV, radio, and news sites between the 19th August and 1st September 2022.
BBC Breakfast News
4 in 10 young people in the UK are spending an unaffordable amount of their income on rent. Shortage of supply contributing to the problem, as tenants overstretch to secure a property they want.
The Today programme
The % of young people spending at least 30% of their income on rent has reached a 5-year high. Renters aged under 30 now spend more of their income on rent than any other age group – an unaffordable amount.
Jeremy Vine
40% of people aged under 30 are paying unaffordable rent. While London and the SE the most expensive places to live, towns such as Rotherham and Bolton have seen the biggest rises in rent.
Newsnight
Data of 150,000 tenancies suggests that young are hardest hit, with 4 in 10 spending 30% or more of their income on rent. Renters packing property with friends or seek a ‘guardianship’ tenancy.
The Guardian
Four in 10 under-30s locked into contracts exceeding 30% of pay. In Rotherham, Bolton, Salford, Walsall and Dudley affordability is worst for young renters since the start of the coronavirus pandemic.
The Sunday Times
Rent is not considered ‘affordable’ if it eats up more than 30% of a tenant’s’ monthly pay. Four in ten people under 30 are spending more than this, according to property consultancy Dataloft – in the capital it’s common to pay more.