Rental prices showed signs of stabilising in March but sharp regional variations continue to define the UK market according to the latest data from Propertymark.
Average rents plateaued overall, with some areas seeing modest growth while others recorded declines. Scotland led monthly increases, with average rents rising 4.95% to £1,123, while Northern Ireland saw a 3.99% uplift to £887.
But London recorded a 1.5% fall in average rents to £2,193, while the West Midlands remained unchanged month-on-month. Several regions, including the North East, South West and East Midlands, also saw notable declines, highlighting the uneven nature of the rental landscape.
The data points to a market increasingly shaped by local dynamics rather than a single national trend, with supply, demand and affordability pressures varying significantly across regions.
MIXED AFFORDABILITY
Affordability also remains mixed, with the average salary required to rent differing widely across the UK. In Wales, the typical household income needed rose to £31,320, while Northern Ireland saw a 5.94% drop to £26,610. London remains the least affordable region, requiring an average household income of £65,790.
While rental inflation has eased compared to previous years, ongoing economic pressures, including inflation and energy costs, are expected to influence affordability and tenant demand in the months ahead.
DYNAMIC MARKET
Megan Eighteen (main picture, inset), President of ARLA Propertymark, says: “The rental market remains dynamic across many regions when viewed on a month-by-month basis. Price fluctuations are driven by a range of factors, including the volume and type of properties available at any given time, as well as local employment opportunities and their influence on demand. Together, these elements shape how consumers assess their options.”
“It is still too early to determine the future direction of the rental market.”
She adds: “Overall, rental inflation has been slowing since late 2024 on a year-on-year basis. However, looking ahead, it is important to consider ongoing global uncertainty and the potential impact this may have on the UK economy in the short to medium term, particularly in relation to household affordability.
“At present, it is still too early to determine the future direction of the rental market. A wide range of variables remain in play, including the full impact of recent legislative changes, which has yet to be realised, alongside broader economic pressures that have not yet fully filtered down to consumers.”
