Rents dip across most UK regions but affordability remains a challenge

Despite signs of improvement in the rental market, affordability pressures persist, prompting an industry body to call on the government to support landlords.

Propertymark’s rental price and average salary tracker reveals rents fell in nine of the 11 regions month-on-month, with Scotland recording the largest drop at 3.4%, followed by the North West at 2.5% and London and the South West at 2.1%.

Propertymark warns that supporting landlord investment in the private rented sector (PRS) is vital to tackling the housing shortage.

Pressure in the rental market is easing

According to the data, affordability improved most in Yorkshire and Humberside and the North West, where the representative salary required to secure an average-priced rental fell by 3.6% and 1.9% respectively over the past year.

Scotland recorded the sharpest annual rise in the salary needed to afford rent, up 3.4% to £34,020, despite rents falling by 3.4% between August and September. The figures show that monthly rent reductions do not necessarily improve affordability over the year.

Kim Lidbury, president of ARLA Propertymark (Association of Residential Letting Agents), explains that rent prices are beginning to fall.

She said: “The September figures suggest that some of the pressure in the rental market is beginning to ease, with rents falling across nine of the 11 regions over the month. The falls seen in Scotland, the North West and the South West are particularly notable and will provide some welcome relief for renters.

“However, the wider affordability picture remains mixed. The fact that the salary requirement has increased in several regions over the past year shows that a monthly fall in rents does not necessarily mean renting has become more affordable. Scotland is a clear example, with rents falling sharply this month while the annual salary requirement has risen.

“It is encouraging to see affordability improving in Yorkshire and Humberside and the North West, but these regional differences reinforce the need to address the underlying pressures in the private rented sector.”

Support landlords to remain in the PRS

The data also reveals regional affordability gap remains significant, with the representative salary required ranging from £26,160 in the North East to £72,450 in London, while the South East also remains above £44,000.

Ms Lidbury added the government must do more to support landlords and boost housing supply.

She said: “Ensuring there are enough good-quality homes available to meet demand will be essential to achieving lasting improvements. Supporting landlords to remain in the sector and invest in rental properties, alongside increasing housing supply, will be key to creating a more stable and affordable market for tenants.”

“While it is encouraging to see rents fall in some of the UK’s most expensive markets this month, affordability remains a significant concern for many renters. The longer-term solution is not simply to focus on rental prices, but to ensure there is a sufficient supply of good-quality homes to meet demand.

“Creating the conditions for landlords to remain in and invest in the private rented sector, alongside increasing the overall supply of homes, will be crucial to delivering a more stable and affordable rental market for tenants.”