A Sky News report claims rents now take 36.1% of tenants’ average earnings – the highest level on record.
The data, relating to 2025, comes from the Chartered Institute of Housing.
The institute says the situation has been exacerbated by the supply of rental properties has fallen as dearer mortgages, higher taxes and greater regulation have led to some smaller landlords quitting the market.
In addition, the long-term impact of the Right to Buy policy – which enables social tenants to buy their homes at a discounted price – has also contributed to higher rents.
“Right to Buy has been very important in helping people access and buy their own homes” Gavin Smart, chief executive officer of the Chartered Institute of Housing, told Sky News.
“But you can’t have the Right to Buy scheme without also paying attention to the consequences for the social rented sector and for replacing the homes that are lost.”
The institute says that, over time, the biggest factor in rising rents has been the huge loss of social housing across the UK.
The sector has fallen from 31% of all households in 1981 to just 17% today.
In the first nine months of 2025-26, data indicates that just under 11,000 local authority homes have been sold through Right to Buy, equivalent to a projected total of 15,000 for the full year.
This is compared to 12,198 social homes built in the latest year.
Sky also cites data from the Royal Institution of Chartered Surveyors (RICS) showing long term tenant demand outstripping rental supply.
Tarrant Parsons, RICS head of market research and analysis, tells Sky News: “Demand growth from tenants has eased in recent months, and some data shows more rental properties on the market than a year ago.
“Even so, the supply of rental homes remains well below pre‑pandemic levels.
“The RICS survey continues to report negative landlord instructions, indicating a shrinking flow of landlords entering the market. With the Renters’ Rights Act due to take effect in May, there’s a risk that regulatory changes accelerate this decline.
“With supply unlikely to improve meaningfully soon, tenants in many areas will continue to face significant affordability pressures.”
In response to the story, a Ministry of Housing, Communities and Local Government spokesperson says: “For too long, social homes have been sold off without being replaced, which is why we’re overhauling Right to Buy to better protect housing stock and ensure money from sales is reinvested in new social homes.
“This is alongside our £39 billion investment kickstarting the biggest boost to social and affordable housing in a generation.
“There is also no evidence of an exodus of landlords leaving the rental sector due to our Renters Rights Act, and good landlords have nothing to fear from these reforms.”
