Prospective tenants in England need an average annual salary of £40,230 before tax to afford a typical two-bedroom rental, according to analysis by RenterCheck using the latest Office for National Statistics (ONS) data. The figure is based on the common affordability requirement used by referencing companies, which typically expect tenants to earn 30 times the monthly rent.
For England as a whole, the average monthly rent for a two-bedroom home stands at £1,341, meaning a yearly wage of £40,230 is required to pass the standard affordability check — close to the current median income of £40,911 a year. However, the income needed varies dramatically depending on where you live.
London tops the list
London is by far the most expensive region, with renters needing an annual household income of £67,170 to afford a two-bedroom place. This is higher than the city's median income of £53,132, and more than three times the £20,940 required in the North East, the cheapest region in England. In fact, all 20 council areas with the highest salary requirements are in the capital.
Kensington and Chelsea tops the list, with prospective tenants needing to earn £104,250 a year to rent an average two-bedroom property, which comes in at £3,475 a month — over two and a half times the national average. Second spot is Westminster, with a required salary of £99,600, followed by Islington (£81,360), Hammersmith and Fulham (£79,680) and Camden (£79,020).
Cheapest areas to rent
At the other end of the scale, renters in Hartlepool face the lowest income requirement in the country. With average two-bedroom rents of £512 a month, tenants would need to make just £15,360 a year to pass the typical affordability check — a similar story to County Durham, the next cheapest at £17,460, as well as North East Lincolnshire (£17,610) and Burnley (£17,700).
Outside London, Bristol has the highest salary requirement among major English cities, at £46,530, while Oxford also stands out, with renters needing £49,860 a year to afford an average two-bedroom home. Meanwhile, Manchester renters need a salary of £37,170, while Birmingham comes in at £30,270 and Liverpool at £25,200.
Understanding the figures
These figures represent the income letting agents typically expect to see, rather than a guarantee that someone can comfortably afford their rent. The 30-times-rent rule is a common industry convention, not a legal necessity, and some referencing companies use different calculations.
The figures are also based on average rents across existing private tenancies, including agreements that began several years ago. As a result, properties currently being advertised may command higher rents, meaning prospective tenants could need to earn considerably more than the figures suggest. Plus, the income of everyone named on a tenancy agreement is usually combined, meaning couples or housemates can pool their earnings to meet the threshold.
For those who cannot meet the income requirement, a guarantor is another option. RenterCheck says guarantors are typically expected to earn 36 times the monthly rent, which would mean an annual income of £48,276 for an average two-bedroom property in England.
