The annual salary needed to secure an average rental property in London has soared to almost £75,000, it has been revealed.
It follows a sharp rise in average rents in the capital, which have climbed 4.2% month-on-month, from £2,385 to £2,484, according to Propertymark’s latest rental price tracker, which found that London had the strongest monthly rental growth last month. As a result, the representative annual salary needed to secure the average-priced rental home increased from £70,050 to £74,520 (+6.4% year-on-year).
The North West saw the second-largest monthly increase, with average rents rising from £1,110 to £1,131 (+1.9% month-on-month), while the representative salary needed increased from £32,700 to £33,930 (+3.8% year-on-year).
Wales recorded the largest monthly rental decline, with average rents falling from £1,009 to £1,000 (-0.9% month-on-month). It was also one of the few regions to see an improvement in affordability year-on-year, with the representative salary needed falling from £30,510 to £30,000 (-1.7%).
Regional rental trends remained mixed, with rents increasing in London (+4.2%), the North West (+1.9%), the West Midlands (+1.7%), the South East (+0.8%) and Scotland (+0.2%), while Wales (-0.9%), the North East (-0.9%), the South West (-0.7%), the East Midlands (-1.1%), the East of England (-0.2%) and Yorkshire and Humberside (-0.1%) all recorded monthly declines.
Kim Lidbury, President of ARLA Propertymark (Association of Residential Letting Agents), commented: “The latest figures show that rental markets continue to vary considerably regionally, with some experiencing further rent growth while others remain relatively stable or have seen modest monthly reductions.
“London continues to lead the market, recording the strongest monthly increase in rental prices, which has also driven a higher representative salary requirement for prospective tenants. Elsewhere, regions such as the North West and West Midlands also recorded rental growth, while Wales and parts of northern England saw rents ease slightly over the month.
“While it’s encouraging to see year-on-year rental growth moderating compared with the sharp increases seen in recent years, the underlying challenge remains unchanged. Demand for privately rented homes continues to significantly outstrip the supply available, meaning rents remain historically high despite slower rates of growth. Until more good quality homes are brought into the sector and policies to support investment by landlords, tenants are unlikely to see the meaningful reductions in rental costs that many are hoping for.”
