The annual salary needed to secure an average rental property in London has increased to almost £75,000. This follows a 4.2% month-on-month rise in average rents in the capital, which climbed from £2,385 to £2,484, according to Propertymark's latest rental price tracker.
The representative annual salary required to rent an average-priced home in London increased by 6.4% year-on-year, from £70,050 to £74,520. London recorded the strongest monthly rental growth last month.
Regional rental trends were mixed across the UK. The North West saw the second-largest monthly increase, with average rents rising by 1.9% from £1,110 to £1,131. In contrast, Wales recorded the largest monthly rental decline, with average rents falling by 0.9% from £1,009 to £1,000.
Kim Lidbury, President of ARLA Propertymark, noted that demand for privately rented homes continues to significantly outstrip supply. This means rents remain historically high despite a moderation in year-on-year rental growth compared to previous sharp increases.