"January’s figures reflect a pause rather than a turning point"
- Megan Eighteen - ARLA Propertymark
Rental prices fell month on month across most UK regions in January, pointing to a seasonal cooling in demand after the Christmas period. The steepest declines were recorded in the North East at −10.0%, followed by the South West at −8.1%, Yorkshire and Humberside at −7.4%, and Wales at −6.1%.
Despite these short-term corrections, the income required to rent shows only limited movement year on year. In several regions, salary thresholds continued to rise, indicating that recent price drops have not yet translated into meaningful affordability gains for tenants.
London diverged from the wider national pattern. Average rents in the capital increased by 3.7% month on month, even as the annual salary required to rent eased slightly compared with last year.
The data highlights an increasingly fragmented rental market. National averages conceal sharp local shifts, with some renters experiencing short-term relief while others face higher costs and fewer options.
This monthly report analyses the private rented sector by comparing average agreed rents with the typical annual salary referencing agencies require for tenants to rent affordably across different regions. Together, these indicators provide insight into how accessible the rental market remains relative to income levels and how conditions vary geographically.
Key regional patterns emerging from the January data include:
Strong month-on-month rent declines across most regions, led by the North East and South West.
Limited improvement in salary requirements, with several areas still recording annual increases.
London standing out as the only region to show monthly rent growth.
Megan Eighteen, president of ARLA Propertymark, said, “January’s data points to a rental market that is clearly responding to seasonal demand dynamics, with widespread month-on-month rent reductions signalling increased price sensitivity among tenants and a softening of competition in many regions. However, this short-term easing should be viewed in context."
She added, “Despite notable monthly declines, the annual salary required to secure a rental property has remained broadly stable or increased in several areas, underlining that affordability pressures remain deeply embedded. Structural issues, particularly constrained supply, continue to limit the extent to which falling rents can deliver sustained relief for renters.
“As a result, January’s figures reflect a pause rather than a turning point. While renters in some regions may experience temporary breathing space, lasting improvements in affordability will depend on increased rental stock and more balanced supply-and-demand conditions, rather than seasonal fluctuations alone.”
