Rental affordability improved slightly across much of the UK in September, with the average salary required to rent a home falling most sharply in London and the South East, according to the latest Rental Price and Average Salary Tracker from Propertymark.
The analysis, which compares average rent levels with the income typically needed to secure a tenancy, found that London saw a 4.2% year-on-year drop in the salary required to rent the average home, while the South East recorded a 2.9% decline.
The figures suggest a gradual easing in rental pressures in parts of the country where affordability had been most stretched, as cost-of-living pressures and a slight increase in available stock begin to moderate prices.
Across the wider market, rental movements were mixed. The North East remained the UK’s most affordable region, with the average monthly rent at £859 requiring an annual salary of just under £26,000.
REGIONAL DISPARITIES
At the other end of the spectrum, London tenants still need an average pre-tax income of £71,460 to rent a typical property, despite the recent softening in prices.
In contrast to the southern regions, Yorkshire and Humberside saw rents rise sharply, with the average monthly cost up 8% year-on-year to £997, requiring a £29,910 salary to secure a property.
Northern Ireland also experienced a 3.7% annual increase in the income needed to rent, while Scotland’s average rent fell 4.6% month-on-month to £1,097.
Overall, Propertymark’s tracker shows early signs of stabilisation in the private rented sector after two years of steep rent inflation.
However, regional disparities remain wide, with rental affordability still a key pressure for many households as wage growth struggles to keep pace with housing costs in several parts of the country.
SOFTENING MARKET
Megan Eighteen, president of ARLA Propertymark, says: “The latest data highlights a clear softening in rental prices across much of the UK, particularly in London and the South East, where affordability pressures have begun to push against rental growth.
“The 4.2% drop in the salary required to rent in the capital reflects a rebalancing in tenant demand and landlord pricing strategy, likely influenced by cost-of-living pressures and increased supply in some urban markets.”
GROWING DEMAND
But she adds: “However, regional variation remains significant. Yorkshire and Humberside’s 8% annual increase in rent levels points to growing demand and potentially undersupplied rental stock in those areas.
“For landlords and investors, this underlines the importance of a granular, region-by-region view when making portfolio decisions.
“Affordability is still a key driver, and we’re likely to see further shifts as interest rates, tenant budgets, and broader economic conditions evolve into 2026.”
