The UK rental market delivered a mixed picture in August. Rents fell in London, the South East and Scotland but rose elsewhere.
Propertymark’s latest figures show South East rents fell 1.8% between July and August. This was the largest monthly decline across the regions.
Scotland recorded a 1.2% fall, while London rents dropped 0.7%.
However, every other region recorded an increase.
Rents rose 0.8% in both the East Midlands and East of England. Wales and Yorkshire and Humberside recorded increases of 0.7%.
Meanwhile, rents increased 0.6% in the West Midlands and 0.5% in the North West.
Rental affordability remains stretched
Despite the monthly fall, London remains the UK’s most expensive rental market. The average rent stood at £2,467 in August.
Propertymark estimates that tenants need an annual salary of £74,010 to secure an average-priced London rental property.
A year earlier, the required salary stood at £71,670. Therefore, the figure has increased by 3.3%.
Affordability also worsened in several other regions.
The required salary increased 2.1% in Scotland. It also rose 1.5% in both the North East and West Midlands.
However, renters saw an improvement in two regions.
The required salary fell 3.7% in Yorkshire and Humberside. Meanwhile, the North West recorded a 1.2% decline.
Kim Lidbury, president of ARLA Propertymark, said: “The latest figures show that rental markets continue to vary considerably across the country, with rents falling in some regions while increasing in others. These movements reflect the underlying balance between supply and demand, as well as the availability and type of properties coming to market.
“Where demand continues to outstrip supply, competition for available homes can place upward pressure on rents. At the same time, landlords are operating in an environment of rising costs and significant regulatory change, all of which can influence the viability and affordability of providing rental homes.
“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. 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.”
