Average rents fell across London, the South East and Scotland during August, although tenants across much of the rest of the country continued to face rising costs, according to new Propertymark figures.
The South East recorded the largest monthly decline, with the average agreed rent falling 1.8% from £1,525 in July to £1,498 in August.
London rents dropped 0.7% from £2,484 to £2,467, while Scotland recorded a 1.2% fall from £1,188 to £1,174.
However, rents increased across every other region covered by the monthly tracker, underlining the mixed picture facing tenants across the UK.
REGIONAL DIVIDE
Wales and Yorkshire and Humberside both recorded monthly increases of 0.7%, while rents rose 0.8% in both the East Midlands and East of England.
The West Midlands saw a 0.6% increase, followed by the North West at 0.5%, North East at 0.3% and South West at 0.1%.
Propertymark’s tracker examines agreed rental prices alongside the representative annual salary a referencing agency would require for a tenant to afford an average-priced property.
Despite the monthly fall in rents, London continues to have the greatest affordability requirement.
A representative salary of £74,010 is now needed to secure an average-priced London rental property, according to the research – 3.3% higher than the £71,670 required a year ago.
AFFORDABILITY PRESSURES
The salary required has also risen by 2.1% in Scotland, 1.5% in both the North East and West Midlands and 1% in the East of England over the past year.
There are signs of improving affordability elsewhere. The required salary has fallen 3.7% year-on-year in Yorkshire and Humberside and by 1.2% in the North West.
Kim Lidbury (main picture, inset), President of ARLA Propertymark, says: “The latest figures show that rental markets continue to vary considerably across the country, with rents falling in some regions while increasing in others. These movements reflect the underlying balance between supply and demand, as well as the availability and type of properties coming to market.
“Where demand continues to outstrip supply, competition for available homes can place upward pressure on rents. At the same time, landlords are operating in an environment of rising costs and significant regulatory change, all of which can influence the viability and affordability of providing rental homes.”
AFFORDABILITY CONCERNS
And she adds: “While it is encouraging to see rents fall in some of the UK’s most expensive markets this month, affordability remains a significant concern for many renters. The longer-term solution is not simply to focus on rental prices, but to ensure there is a sufficient supply of good-quality homes to meet demand.
“Creating the conditions for landlords to remain in and invest in the private rented sector, alongside increasing the overall supply of homes, will be crucial to delivering a more stable and affordable rental market for tenants.”
