Average rents fell across nine of 11 UK regions in September as signs emerged that some of the pressure on the private rented sector is beginning to ease.
Propertymark’s latest rental price and salary tracker shows Scotland recorded the largest monthly decline, with average rents falling 3.4% from £1,174 to £1,134.
The North West recorded a 2.5% drop to £1,109, while rents in both London and the South West fell 2.1% to £2,415 and £1,256 respectively.
Only the East Midlands recorded an increase, edging 0.1% higher to £991, while rents were down or broadly unchanged elsewhere.
AFFORDABILITY GAP
Despite the widespread monthly falls, the research shows significant regional differences in the earnings required to secure a rental property.
London remains by far the most expensive region, with a representative annual salary of £72,450 required to afford the average-priced rental.
That compares with £26,160 in the North East, £28,830 in Yorkshire and Humberside and £29,850 in Wales.
The South East requires earnings of £44,730, while the figure stands at £40,620 in the East of England.
Affordability has improved most over the past year in Yorkshire and Humberside, where the salary requirement has fallen 3.6%, followed by the North West at 2%.
Scotland moves in the opposite direction, with the required salary rising 3.4% year-on-year to £34,020 despite September’s fall in rents.
SUPPLY PRESSURES
Kim Lidbury (main picture, inset), President of ARLA Propertymark, says: “The September figures suggest that some of the pressure in the rental market is beginning to ease, with rents falling across nine of the 11 regions over the month.
“The falls seen in Scotland, the North West and the South West are particularly notable and will provide some welcome relief for renters.”
But she warns that monthly rent movements do not necessarily translate into improved affordability.
Lidbury adds: “Ensuring there are enough good-quality homes available to meet demand will be essential to achieving lasting improvements.
“Supporting landlords to remain in the sector and invest in rental properties, alongside increasing housing supply, will be key to creating a more stable and affordable market for tenants.”
