Rents fell month on month in nine of the 11 regions in September, but rental affordability remains uneven, according to the latest rental price and average salary tracker from Propertymark.
Scotland recorded the largest drop at 3.4%, taking average rents to £1,134, followed by the North West at 2.5% and London and the South West at 2.1% each.
“The September figures suggest that some of the pressure in the rental market is beginning to ease, with rents falling across nine of the 11 regions over the month,” said Kim Lidbury, president of ARLA Propertymark. “The falls seen in Scotland, the North West and the South West are particularly notable and will provide some welcome relief for renters.”
Over the past year, affordability improved most in Yorkshire and Humberside and the North West, where the representative salary needed to secure an average-priced rental fell by 3.6% and 1.9% respectively. Scotland moved the other way. The required salary there rose 3.4% year on year to £34,020 despite the monthly rent fall, showing that short-term rental movements do not necessarily translate into improved annual affordability.
“However, the wider affordability picture remains mixed,” she added. “The fact that the salary requirement has increased in several regions over the past year shows that a monthly fall in rents does not necessarily mean renting has become more affordable. Scotland is a clear example, with rents falling sharply this month while the annual salary requirement has risen.”
Rental affordability gap stays wide
The regional divide remains significant. The representative salary required ranges from £26,160 in the North East to £72,450 in London, while the South East also sits above £44,000. Propertymark describes the picture as gradual easing rather than a broad-based improvement, with six regions recording lower rents this month while annual salary requirements stay higher than a year ago, underlining the continued pressure on renters’ incomes.
“It is encouraging to see affordability improving in Yorkshire and Humberside and the North West, but these regional differences reinforce the need to address the underlying pressures in the private rented sector,” Lidbury noted.
“Ensuring there are enough good-quality homes available to meet demand will be essential to achieving lasting improvements,” she explained. “Supporting landlords to remain in the sector and invest in rental properties, alongside increasing housing supply, will be key to creating a more stable and affordable market for tenants.”
“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,” Lidbury said. “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.”
