"Rents have risen across many parts of the UK, but the market remains active and resilient, underpinned by strong tenant demand,"
- Megan Eighteen - ARLA Propertymark
Regional differences in the UK’s private rental market are becoming more pronounced, with some areas facing sharp affordability pressures while others experience modest relief.
The latest data shows the average UK rent at £1,471, requiring an annual salary of £44,130 to secure a home. Rents dipped 2.8% month-on-month and 0.6% year-on-year, highlighting a slight cooling in national averages but masking significant regional variation.
Wales and the North East see steep rent increases
Wales and the North East recorded the strongest month-on-month rent rises, with salary requirements moving in opposite directions.
In Wales, average rent rose 3.0%, from £995 in September to £1,025 in October, while the salary needed to rent fell slightly by 0.4%, from £30,870 to £30,750 year-on-year. In the North East, rents climbed 6.1%, from £859 to £911, while the salary required dropped 20.6%, from £34,410 to £27,330 over the year. These figures suggest a shift in affordability dynamics across both regions.
London, Scotland, and the South show easing affordability pressures
London, Scotland, and southern regions have seen mild improvements in rental affordability, although they remain among the most expensive markets in the UK.
In London, the typical salary required fell 3.6%, from £69,780 to £67,290, while rents declined 5.8%, from £2,382 to £2,243 month-on-month. Scotland recorded a 3.4% decrease in the salary required, from £32,730 to £31,620, and a 3.9% drop in rents, from £1,097 to £1,054. The South East experienced a smaller shift, with salary requirements dipping 1.5%, from £45,360 to £44,670, and rents remaining largely steady at −0.5%, from £1,496 to £1,489.
Midlands and East regions maintain stability
The Midlands and Eastern regions continue to show relative balance, with modest rent movements and limited affordability changes.
In the East Midlands, salary requirements increased 1.9%, from £30,810 to £31,380, alongside a 5.6% rise in rents, from £991 to £1,046. The East of England remained steady, with salaries up only 0.15%, from £40,080 to £40,140, while rents edged down 0.3%, from £1,342 to £1,338. The West Midlands showed near-total stability, as salaries slipped 0.2%, from £31,590 to £31,530, and rents fell slightly 0.5%, from £1,056 to £1,051.
Market outlook
“Rents have risen across many parts of the UK, but the market remains active and resilient, underpinned by strong tenant demand,” said Megan Eighteen, president of ARLA Propertymark (Association of Residential Letting Agents). “Supply is under pressure, with some landlords leaving the sector due to rising costs and regulatory changes, while new professional landlords are entering the market and investing for the long term, helping to bring much-needed stock back into circulation. However, this may not be enough to meet ongoing, growing demand, and support is needed to encourage further investment.”
“Rising operational costs, from energy efficiency requirements to maintenance and insurance, are influencing rent levels, but agents and landlords are working hard to keep tenancies fair, sustainable, and stable,” Eighteen explained. “With the right policy support and continued investment, the private rental sector can continue to provide high-quality homes for tenants while remaining a viable and attractive market for landlords.”
