London and the North West are leading the nation when it comes to affordable parts of the UK for renters.
Analysis of typical rental prices and salaries by Propertymark found the capital saw the greatest improvement in affordability last month.
The representative annual salary needed to secure the average-priced rental home fell from £86,250 to £71,550, down 17% year-on-year, despite average rents increasing from £2,307 to £2,385, Propertymark said.
The North West also recorded a substantial improvement in affordability, with the typical salary required falling from £40,350 to £33,300, while average rents continued to rise from £1,087 to £1,110.
RENTAL TRACKER
Across the UK, the Propertymark research found the average rent required is £1,500 per month, with a typical salary of £45,000 needed.
This is calculated based on the average required salary to pass referencing checks in the UK at 30 times the monthly rent.
Scotland experienced the largest monthly rental decline among the reported regions, with average rents falling from £1,257 to £1,186, while the salary required remained broadly stable, increasing slightly from £35,220 to £35,580.
REGIONAL TRENDS
Regional rental trends remain mixed, with London (+3.4%), the North West (+2.1%) and the South East (+1.7%) recording monthly rent increases, while Scotland (-5.7%), the West Midlands (-0.4%) and Yorkshire and Humberside (-1.0%) saw rents fall.
Kim Lidbury, president of ARLA Propertymark, says: “The latest figures demonstrate that rental markets continue to move at different speeds across the UK. While rents continue to rise in areas such as London, the North West and the South East, other regions are experiencing more stable pricing or modest declines.
“Encouragingly, the typical salary needed to secure a rental property has fallen across most regions compared with a year ago, with London and the North West seeing particularly notable improvements. However, affordability pressures remain significant as rents continue to sit well above historic levels and demand for quality rental homes continues to outstrip supply.
“The long-term solution remains increasing the supply of privately rented homes. Greater investment and policies that support landlords will be essential to improving choice for tenants and helping to moderate rental costs over time.”
