Rental affordability has deteriorated across eight UK regions, with tenants requiring higher salaries to secure average-priced properties, according to new data from Propertymark.
The research shows Scotland recorded the largest year-on-year increase in required wages at 3.2%, followed by Wales at 3% and the South West at 2.5%. The findings come as landlords reassess their investment strategies amid changing market conditions.
Regional variations
Three regions showed improvement, with the North East seeing the salary requirement fall by 6.1%, the East Midlands by 2.8%, and the North West by 1.1%.
London maintains the highest affordability threshold, requiring an annual salary of £69,660 to secure an average-priced rental property. This compares with £29,130 in Yorkshire and Humberside, representing a significant regional disparity.
Average monthly rents increased in eight of 11 regions between September and October. Wales recorded the largest monthly rise at 31.1%, followed by the North East at 29.8% and the South West at 7.5%. Scotland, London and the North West were the only regions to record monthly falls.
Supply concerns
Kim Lidbury, President of ARLA Propertymark, noted the sharp rises in Wales and the North East demonstrate how rapidly rental costs can change across different parts of the country.
“Ultimately, improving affordability will require a sustained focus on increasing the supply of good-quality rental homes,” Lidbury said. “Supporting responsible landlords to remain in the sector and invest in their properties, while addressing the wider shortage of housing, will be essential to creating a more balanced and sustainable private rented sector for tenants.”
The October figures indicate renewed upward pressure across much of the private rented sector, according to Propertymark’s analysis. The data reflects ongoing challenges in the rental market as market conditions continue to evolve across different regions.
