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London Rental Affordability Improves as Required Salary Drops by 17%

The average salary needed to rent a typical London home has fallen by 17% year-on-year, offering some relief to tenants in the capital. The North West also saw a significant improvement in rental affordability, with required salaries dropping by 17.5%.

  • Average salary needed to rent in London fell 17% to £71,550 in June 2026.
  • North West saw a 17.5% drop in required salary to £33,300.
  • UK average monthly rent reached £1,500 in June, up 2.3% year-on-year.

Rental affordability in London has made a welcome step forward, but it's still a story of two nations - or rather, regions. The latest Rental Price and Average Salary Tracker from Propertymark reveals that the average salary required to secure a typical home in the capital has plummeted by 17% over the past year, dropping from £86,250 in June 2025 to £71,550 in June 2026. This glimmer of hope for Londoners struggling with high housing costs is not unique to the capital, however - other regions are also seeing improvements.

The North West is a notable example, where the typical salary required to rent a home has fallen by 17.5% year-on-year, from £40,350 to £33,300. This significant boost in affordability could ease financial pressures on households and businesses in the region, making it more attractive to those considering relocation from more expensive areas.

But while London, the North West, and the South East recorded monthly rent increases of 3.4%, 2.1%, and 1.7% respectively between May and June 2026, other regions are not faring so well. Wales and the West Midlands saw a modest 0.4% fall in rents, while Yorkshire and Humberside saw a 1% decrease. Scotland recorded the largest monthly rental decline among the reported regions, with average rents falling by 5.7%, but the salary required there edged up 1% year-on-year to £35,580.

Across the entire UK, the average monthly rent stood at £1,500 in June 2026, representing a 2.3% increase compared to the previous year. The representative annual salary required to rent an average-priced home nationwide was £45,000 - a figure that remains out of reach for many households.

Kim Lidbury, ARLA Propertymark president, welcomed the trend of falling required salaries in some regions but cautioned that affordability pressures remain significant. "Increasing the supply of privately rented homes is crucial to providing tenants with more choice and helping to moderate rental costs over the long term," she said. For UK households, these mixed signals mean continued vigilance and careful financial planning when it comes to housing budgets.

Why this matters: This report provides crucial insights into the evolving landscape of the UK rental market, directly impacting the financial stability and living costs for millions of households. For businesses, changes in rental affordability can influence recruitment and retention strategies, particularly in major economic hubs.

What this means for you: What this means for you: If you are a renter in London or the North West, you might find a slight easing in the financial burden of securing a new tenancy, though overall rents are still high. For savers and investors, the property market's mixed signals underscore the importance of diversified portfolios and professional financial advice.

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