Wokingham has been revealed as one of the least affordable locations for renters in the United Kingdom.
The average income after tax in Wokingham is £30,843, and tenants spend on average £947 on their rent, giving Wokingham an average rent-to-income ratio of 40.8%.
The national average is 36%.
Bournemouth (47.2%), Oxford (46.4%) and Brighton (46%) are ranked as the top three locations with the highest rent to net income ratio.
The research from Canopy, a landlord services and tenant referencing provider, in its latest rental affordability index noted that renters who typically spend 40% of take-home salary are considered to be at the very outer limit of affordability.
One in 25 tenants (4%) across the UK as a whole are spending more than 80% of their take-home salary on paying the rent.
Tenants in London (44.5%), the South-East (44.1%) and the South-West (41.3%) are paying the highest share of their salary on rent versus the national average.
Northern Ireland is the most affordable area of the country, with the average tenant spending 32.9% of their wage on rent.
Chris Hutchinson, CEO at Canopy, said: “Our latest data shows stark differences in rental affordability across the UK, with some areas facing extreme conditions.
“In particular, parts of London have become almost unattainable, with tenants spending more than 50% of their net income on rent.
“This simply isn’t sustainable in the long term.
“The rental market is in a fragile state, and while it’s encouraging to see efforts being made to relieve pressure on tenants, any regulatory changes could inadvertently push landlords out of the market, shrinking the supply of properties.
“Most landlords are already adhering to the spirit of the Renter’s Reform Bill, but the full consequences remain uncertain.
“The Government must tread carefully, so as not to dis-incentivise landlords further, which could ultimately lead to additional rental price pressure, deepening the affordability crisis.”
