Prospective tenants in London need an annual salary of £74,520 to afford the average-priced rental property, according to the latest figures from Propertymark. This represents a 6.4% increase in the salary requirement compared to a year ago, when it was £70,050.
The average agreed monthly rent in the capital has also risen, jumping by 4.2% in the latest month from £2,385 to £2,484. Kim Lidbury, president of ARLA Propertymark, noted that London continues to lead the market with the strongest monthly increase in rental prices, driving the higher salary requirement.
Regional rental market movements were mixed. The North West recorded a 1.9% monthly rise in average rents, with the required annual salary increasing by 3.8% to £33,930. In contrast, Wales experienced a 0.9% fall in average agreed monthly rent to £1,000, and its representative salary requirement was 1.7% lower than a year ago at £30,000.
Other regions saw varied changes, with increases in the West Midlands, South East, and Scotland, while rents fell in the East Midlands, North East, South West, East of England, and Yorkshire and Humberside. Lidbury highlighted that demand for privately rented homes continues to significantly outstrip supply, keeping rents historically high despite slower rates of growth compared to recent years.