Average London rents rose by almost £100 during July, pushing the representative annual salary needed to secure a home in the capital above £74,500.
The latest Propertymark Rental Price and Average Salary Tracker recorded a 4.2% monthly increase, with the average agreed rent climbing from £2,385 in June to £2,484.
The representative salary required by referencing agencies now stands at £74,520, up 6.4% from £70,050 in July 2025.
Although annual rental growth is moderating nationally, Propertymark says high demand and limited supply continue to place upward pressure on rents.
NORTH WEST RECORDS SECOND-LARGEST RISE
The North West recorded the second-strongest monthly increase, with rents rising by 1.9% from £1,110 to £1,131. The representative salary needed increased by 3.8% annually to £33,930.
West Midlands rents rose by 1.7% to £1,058, while the South East recorded growth of 0.8% to £1,525. Scotland saw a smaller 0.2% increase to £1,188.
Other parts of the market recorded modest monthly falls. Average rents declined by 1.1% in the East Midlands to £982, while Wales and the North East both recorded reductions of 0.9%.
Rents also fell by 0.7% in the South West, 0.2% in the East of England and 0.1% in Yorkshire and Humberside.
AFFORDABILITY IMPROVES IN SOME REGIONS
Wales was among the few regions to record an annual improvement in affordability, with the representative salary needed to rent the average home falling by 1.7% to £30,000.
The salary requirement declined by 1.8% in the East of England and by 0.2% in the East Midlands.
Kim Lidbury (main picture, inset), President of ARLA Propertymark, says: “The latest figures show that rental markets continue to vary considerably regionally, with some experiencing further rent growth while others remain relatively stable or have seen modest monthly reductions.
“London continues to lead the market, recording the strongest monthly increase in rental prices, which has also driven a higher representative salary requirement for prospective tenants. Elsewhere, regions such as the North West and West Midlands also recorded rental growth, while Wales and parts of northern England saw rents ease slightly over the month.”
CHALLENGING TIMES
She adds: “While it’s encouraging to see year-on-year rental growth moderating compared with the sharp increases seen in recent years, the underlying challenge remains unchanged. Demand for privately rented homes continues to significantly outstrip the supply available, meaning rents remain historically high despite slower rates of growth.
“Until more good-quality homes are brought into the sector and policies support investment by landlords, tenants are unlikely to see the meaningful reductions in rental costs that many are hoping for.”
AVERAGE ANNUAL SALARY NEEDED TO SECURE AVERAGE-PRICED HOME
| Location | Average rental price | Representative average annual salary needed to secure the average-priced home (before tax and any deductions) |
| Scotland | £1,188 | £35,640 |
| Northern Ireland | £1,000 | £30,000 |
| Wales | £982 | £29,460 |
| East Midlands | £1,349 | £40,470 |
| East of England | £2,484 | £74,520 |
| London (inner and outer) | £875 | £26,250 |
| North East | £1,131 | £33,930 |
| North West | £1,525 | £45,750 |
| South East | £1,282 | £38,460 |
| South West | £1,058 | £31,740 |
| West Midlands | £965 | £28,950 |
| Yorkshire and Humberside | £1,188 | £35,640 |
