Wales and the North East hit hardest as rental affordability gap widens

Wales and the North East are bearing the brunt of the UK’s widening rental affordability divide, new figures reveal.

ARLA Propertymark says that tenants in Wales saw their average monthly rent climb from £995 in September to £1,025 in October — a jump of 3%.

Yet, the salary typically required to rent fell slightly, down 0.4% to £30,750.

The picture is even starker in the North East, where rents rose 6.1% in a month, while the income needed slumped by more than 20% year-on-year, from £34,410 to £27,330.

Landlords leave while others enter

ARLA Propertymark’s president, Megan Eighteen, said: “Rents have risen across many parts of the UK, but the market remains active and resilient, underpinned by strong tenant demand.

“Supply is under pressure, with some landlords leaving the sector due to rising costs and regulatory changes, while new professional landlords are entering the market and investing for the long term, helping to bring much-needed stock back into circulation.

“However, this may not be enough to meet ongoing, growing demand and support is needed to encourage further investment.”

She added: “Rising operational costs, from energy efficiency requirements to maintenance and insurance, are influencing rent levels, but agents and landlords are working hard to keep tenancies fair, sustainable, and stable.

“With the right policy support and continued investment, the private rental sector can continue to provide high-quality homes for tenants while remaining a viable and attractive market for landlords.”

London rents dip

Elsewhere, parts of the country are showing faint signs of relief with London, Scotland and the South East all recording small improvements in affordability.

However, they remain among the most expensive regions to rent in.

In the capital, the average rent slipped 5.8% to £2,243, while the salary needed to qualify for a tenancy fell to £67,290 — still more than double the UK average.

Scotland’s figures were slightly softer too, with rents down 3.9% and typical salaries dropping 3.4%.

In the South East, rents eased by 0.5% and the required income dipped to £44,670.

The East Midlands saw modest growth, with salaries rising 1.9% and rents up 5.6%.

Meanwhile, the East of England barely moved, and the West Midlands remained flat on both fronts which is a sign of a market finding balance amid national volatility, the organisation says.

Property118 says:

Landlords reading these figures should take them as a clear reminder that control and preparation are now key to survival in a volatile rental market. With affordability gaps widening and some regions seeing double-digit shifts in the salary-to-rent ratio, the message is simple: tighten your operational discipline before the next round of regulation hits.

Many owners are already responding by reviewing how they structure their portfolios. Those still holding properties in personal names might consider whether a limited company structure gives better long-term flexibility on taxation and borrowing. Others are focusing on stress-testing their finances, factoring in not just higher insurance and maintenance costs, but also potential rent freezes, delayed payments, and tightening affordability checks from lenders.