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UK Rental Market Sees Rents Fall in London and South East, Rise Elsewhere

The UK rental market showed a mixed picture in August, with rents decreasing in London, the South East, and Scotland, but increasing in other regions.

  • Rents in the South East fell by 1.8% between July and August, the largest monthly decline.
  • London rents dropped by 0.7% in August, while Scotland saw a 1.2% fall.
  • The East Midlands and East of England recorded rent increases of 0.8%.

The UK rental market experienced varied trends in August, according to Propertymark's latest figures. Rents decreased in London, the South East, and Scotland, while rising in all other regions.

The South East recorded the largest monthly decline, with rents falling by 1.8% between July and August. Scotland saw a 1.2% decrease, and London rents dropped by 0.7%.

Conversely, rents increased across other parts of the UK. The East Midlands and East of England both experienced a 0.8% rise. Wales and Yorkshire and Humberside recorded increases of 0.7%, while the West Midlands saw a 0.6% increase and the North West a 0.5% rise.

Despite the monthly fall, London remains the most expensive rental market in the UK, with an average rent of £2,467 in August. Propertymark estimates that an annual salary of £74,010 is needed to secure an average-priced London rental property, an increase of 3.3% from a year earlier.

Rental affordability also worsened in Scotland, the North East, and the West Midlands, where required salaries increased by 2.1%, 1.5%, and 1.5% respectively. However, renters in Yorkshire and Humberside saw a 3.7% fall in the required salary, and the North West recorded a 1.2% decline.

Why this matters: The varying rental market conditions highlight regional differences in housing supply and demand, impacting affordability for tenants across the country.

What this means for you: If you are a renter, your experience of rent changes and affordability may vary significantly depending on your region, with some areas seeing falls and others increases.

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