Rents fell across almost the entire UK in September, offering tenants some relief. However, affordability remains a major concern in several regions.
New figures from Propertymark show average rents declined in 10 of the 11 regions surveyed.
Scotland recorded the biggest monthly drop, with average rents falling 3.4% from £1,174 in August to £1,134 in September.
Rents in the North West fell 2.5% to £1,109. London and the South West both recorded declines of 2.1%.
The East Midlands was the only region to register an increase. Average rents edged up 0.1% to £991.
However, Propertymark’s latest rental price and salary tracker reveals a mixed picture for affordability.
Despite September’s decline, Scotland recorded the largest annual increase in the income needed to rent. The figure rose 3.4% to £34,020.
London remains the UK’s most expensive rental market, with average monthly rents of £2,415. Tenants would need an annual income of £72,450 to meet the report’s affordability threshold.
That compares with £26,160 in the North East, where average monthly rents stood at £872.
The South East remains the second most expensive region. Average rents reached £1,491, requiring an indicative annual income of £44,730.
There were signs of improving affordability elsewhere.
Yorkshire and Humberside recorded the biggest annual reduction in the income required to rent, down 3.6% to £28,830. The North West followed, with a 2% fall to £33,270.
But affordability pressures increased in several other regions.
Income requirements rose by 1.5% in the North East, 1.4% in London and 1.1% in the South West.
The figures suggest the rental market is cooling. However, the extent of the improvement varies considerably between regions.
Kim Lidbury, president of ARLA Propertymark, said: “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. The falls seen in Scotland, the North West and the South West are particularly notable and will provide some welcome relief for renters.
“However, the wider affordability picture remains mixed. 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.”
Lidbury said increasing rental supply would be essential to improving affordability. She also stressed the importance of retaining landlords in the sector.
“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,” she added.
