Renters in Blackburn with Darwen are now spending more than a quarter of their gross average income on rent, figures show.
The figures show the average private renting household in the borough spent 25.6 per cent of their gross income on rent in 2022-23 – up from 24.5 per cent in 2021-22.
A housing and homelessness charity said private renting in England "has reached boiling point", and urged the Government to address soaring rent prices.
But Office for National Statistics figures show private renting households across the country actually spent a smaller proportion of their gross income on rent in 2022-23 than in any year since records began in 2014-15.
Councillor Damian Talbot, Blackburn with Darwen Council's executive member for housing and public health, said: “Blackburn with Darwen has seen an increase in the percentage of gross income spent on private rented accommodation, although this is still around 10 per cent less compared to the national figure.
"Rents have increased locally and this includes larger deposits and rent in advance required in order to secure a property.
"We share the concern that the cost of privately rented property has increased over the past 12/24 months – all during a time when residents are already struggling due to the cost of living crisis and other increased costs such as food and energy.
"The report talks about gross income but does not take these factors into account.
"We are glad the new government has committed to the building of affordable homes. We are facing a national crisis in housing, and the situation desperately needs addressing.”
Nationally, the proportion of gross income private-renting households spent on rent fell from 36.5 per cent to 34.2 per cent.
This is because, although private rents have risen significantly since 2015, average wage rises have outstripped rent increases.
The median is used to exclude extreme values which could skew the average, and an area is deemed "affordable" when households spend 30 per cent or less of their income on rent.
It means private rental properties nationwide are deemed unaffordable at current rates, although that is not the case in Blackburn with Darwen.
Polly Neate, chief executive of Shelter, said: "Private renting has reached boiling point.
"Decades of failure to build genuinely affordable social homes has left many private renters paying over the odds for often shoddy homes for far too long.
"We hear from renters every day who are forced to cough up ridiculous sums, or face being kicked out of their homes.
"A third of private renters are paying half or more of their income on rent. For many of these renters, any rise in rent is as good as an eviction."
She added the Government must protect renters from unexpected jumps in rent and rein in in-tenancy rent increases.
Ella Nuttall, senior policy and research officer at youth homelessness charity Centrepoint, said rent arrears and high housing costs are "a key driver of homelessness" and warned the soaring cost of living means income growth does not make housing affordable.
"Building genuinely affordable housing, including a great deal more social homes, along with reforming the rental sector will be key to ending the housing crisis – and so far, the Government has made the right noises," she added.
ONS figures show the median private rent in Blackburn with Darwen has remained "affordable" since records began in 2014-15.
A Ministry of Housing, Communities and Local Government spokesperson said: "We are in the worst housing crisis in living memory, with rent levels unaffordable for far too many tenants.
"Our Renters’ Rights Bill will fundamentally reform the private rented sector to address this, empowering tenants to tackle unreasonable rent hikes and banning unfair bidding wars.
"This Government will also build 1.5 million homes to help us turn the tide, while our mandatory housing targets will ensure that more homes are delivered in the least affordable areas."
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