Affordability is the foundation of a sustainable tenancy. If the rent is a stretch from day one, even a well-intentioned tenant can fall behind when circumstances change. This guide explains how UK landlords assess affordability in practice.
The income multiple
The most common approach compares the applicant's gross annual income to the annual rent. Many landlords look for income of at least 2.5 to 3 times the annual rent. For example, on rent of £1,000 a month (£12,000 a year), a 3x multiple implies income of around £36,000.
Treat the multiple as a guide rather than a pass/fail gate. Someone with no other debts may manage comfortably below it, while someone with significant outgoings may struggle above it.
What counts as income
- Employment salary (evidenced with payslips)
- Self-employed profit (evidenced with accounts or SA302s)
- Pensions and other regular, reliable income
- A guarantor's income, where one is offered
Whatever the source, the key test is whether it is stable and can be evidenced. One-off or irregular payments shouldn't be treated as dependable income.
Beyond the headline number
Affordability isn't just the multiple. Consider the applicant's other commitments, how secure the income is, and whether there are gaps or inconsistencies to ask about. This is where tenant screeninghelps — it weighs affordability and stability together and flags what's missing.
How LetLogic helps
LetLogic calculates the income multiple and assesses stability from the application you provide, then explains the result in plain English and suggests the documents to request. It's a fast first pass — you can see how it reads an example on the sample report.