The UK rental market showed a mixed picture in February with rents rising in several regions while falling back in others, highlighting an increasingly fragmented private rented sector.
New figures from Propertymark show notable month-on-month rental increases in the East Midlands (+3.4%), North West (+2.8%), Scotland (+2.7%) and the South East (+2.0%). However, rents fell in Northern Ireland (-6.6%), the West Midlands (-1.3%), the East of England (-0.3%) and Yorkshire and Humberside (-0.1%).
London recorded a 1% monthly increase, taking the average rent across inner and outer London to £2,226 in February. Tenants typically need an annual salary of £66,780 to afford the average property in the capital.
Across the UK, required salaries have generally continued to rise year on year, suggesting affordability pressures remain entrenched despite short-term movements in rents.
REGIONAL VARIATIONS
The biggest annual increases in salary requirements were seen in Scotland, where the typical income needed rose 5.9% to £32,100, and the North West, where it increased 5% to £33,060. By contrast, London was one of the few regions where the required income fell, declining 2.2% compared with a year earlier.
Average rents across the UK vary widely. Northern Ireland recorded the lowest typical rent at £853 per month, while London remains the most expensive market by a considerable margin. Other higher-cost regions include the South East (£1,521), South West (£1,372) and East of England (£1,324).
MARKET ADJUSTMENT
Megan Eighteen (main picture, inset), president of ARLA Propertymark, says the latest data shows a market adjusting rather than undergoing a major shift.
She adds: “February’s data reflects a more varied rental landscape than we saw earlier in the winter, with a number of regions recording modest month-on-month rent increases, including the East Midlands, North West and Scotland.
“At the same time, areas such as Northern Ireland and the West Midlands have seen rents fall back, demonstrating that seasonal influences are still at play in parts of the market.”
AFFORDABILITY PRESSURES
And she says: “While some regions are experiencing short-term adjustments, the annual salary required to secure a rental property has generally edged upwards year on year. This underlines that affordability pressures remain structurally embedded despite monthly volatility.
“Overall, the data suggests a market that is recalibrating rather than correcting sharply. Sustainable improvements in affordability will ultimately depend on increasing rental supply and achieving a better balance between demand and available homes, rather than relying on seasonal shifts alone.”
