Fresh analysis of the current private rented sector in the UK by ARLA Propertymark has been released, examining the average agreed rental prices alongside the typical average annual salary required by referencing agencies to affordably rent across the country.
By exploring these key indicators, the industry body aims to shed light on the affordability and accessibility of private rented housing relative to income levels, offering valuable insights for those navigating the dynamic landscape of the UK’s housing market.
August 2025:
| Location | Average rental price | Average annual salary typically needed to secure the average-priced home (before tax and any deductions) |
| Scotland | £1,150 | £34,500 |
| Northern Ireland | £947 | £28,410 |
| Wales | £1,004 | £30,120 |
| East Midlands | £981 | £29,430 |
| East of England | £1,346 | £40,380 |
| London (inner and outer London) | £2,389 | £71,670 |
| North East | £865 | £25,950 |
| North West | £1,151 | £34,530 |
| South East | £1,497 | £44,910 |
| South West | £1,279 | £38,370 |
| West Midlands | £1,048 | £31,440 |
| Yorkshire and Humberside | £1,009 | £30,270 |
August 2024:
| Location | Average rental price 2024 | Representative average annual salary needed to secure the average-priced home (before tax and any deductions) |
| Scotland | £1,122 | £33,660 |
| Northern Ireland | £918 | £27,540 |
| Wales | £1,004 | £30,120 |
| East Midlands | £990 | £29,700 |
| East of England | £1,354 | £40,620 |
| London (inner and outer London) | £2,435 | £73,050 |
| North East | £873 | £26,190 |
| North West | £1,113 | £33,390 |
| South East | £1,522 | £45,660 |
| South West | £1,271 | £38,130 |
| West Midlands | £1,056 | £31,680 |
| Yorkshire and Humberside | £933 | £27,990 |
Change seen in the average salary required year on year:
| Location | August 2024 – typical annual salary needed to secure a home (before tax and deductions) | August 2025 – typical annual salary needed to secure a home (before tax and deductions) | % change in salary needed |
| Scotland | £33,660 | £34,500 | +2.5% |
| Northern Ireland | £27,540 | £28,410 | +3.2% |
| Wales | £30,120 | £30,120 | 0.0% |
| East Midlands | £29,700 | £29,430 | -1% |
| East of England | £40,620 | £40,380 | -0.6% |
| London (inner and outer London) | £73,050 | £71,670 | -1.9% |
| North East | £26,190 | £25,950 | -0.9% |
| North West | £33,390 | £34,530 | +3.4% |
| South East | £45,660 | £44,910 | -1.6% |
| South West | £38,130 | £38,370 | +0.6% |
| West Midlands | £31,680 | £31,440 | -0.8% |
| Yorkshire and Humberside | £27,990 | £30,270 | +8.1% |
Average monthly rental price month-on-month comparison (July 2025 compared to August 2025):
| Location | Average monthly rental price – July 2025 | Average monthly rental price – August 2025 | Percentage change (difference from July to August 2025) |
| Scotland | £1,163 | £1,150 | -1.1% |
| Northern Ireland | £991 | £947 | -4.4% |
| Wales | £1,020 | £1,004 | -1.6% |
| East Midlands | £983 | £981 | -0.2% |
| East of England | £1,376 | £1,346 | -2.2% |
| London (inner and outer London) | £2,374 | £2,389 | +0.6% |
| North East | £878 | £865 | -1.5% |
| North West | £1,098 | £1,151 | +4.8% |
| South East | £1,517 | £1,497 | -1.3% |
| South West | £1,269 | £1,279 | +0.8% |
| West Midlands | £1,063 | £1,048 | -1.4% |
| Yorkshire and Humberside | £954 | £1,009 | +5.8% |
Megan Eighteen, president of ARLA Propertymark, commented: “Year-on-year, rental rises have eased across many areas of the country. Much of the private rented market has reached its peak when it comes to affordability, and coupled with slowly decreasing interest rates, this is starting to make rents soften slightly. However, this will not be enough to bring down rents to more affordable levels across the board in the longer term.
“The private rental landscape is varied across the UK, with trends fluctuating drastically in some instances. However, one fact remains – there is a complete undersupply of available homes of all types and tenures, and other costs to landlords, such as the scrapping of mortgage interest relief and the introduction of endless red tape and licensing schemes have huge implications across the board and are contributing to the previous spikes seen in raised rent levels.
“Private rented homes have always played a crucial role in housing the nation, and a stream of professional, law-abiding landlords should be encouraged to help keep pace with growing demand rather than penalised by a continuous bombardment of financial and regulatory hurdles.”
It’s no surprise to see the private rented sector hitting what’s now being called an ‘affordability ceiling’. We’ve been warning for some time that rents can only rise so far before tenants simply can’t pay any more. The figures—over a third of income going on rent nationally, and even higher in London—are stark, but they reflect what we’re seeing on the ground every day.
We’re now witnessing what happens when too few players dominate a market. Just as the big supermarkets have squeezed out competition and left shoppers with higher prices and fewer choices, the rental sector is heading the same way. As landlords exit and supply shrinks, the market risks being left in the hands of a small number of large operators—never a good outcome for tenants or communities.
The real issue is supply. Landlords are leaving the market due to increased costs and constant changes in legislation, and that’s only making things worse for tenants. Until there’s a genuine effort to encourage investment in the sector and create more homes, we’re going to keep seeing these pressures.
We need a balanced approach: support for tenants, yes, but also a stable environment for landlords. Otherwise, we risk pushing more people into unaffordable situations and making the housing crisis even harder to solve.
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