Rent price gaps widen across the UK

Landlords are facing widening gaps in rent performance and tenant affordability, with sharp monthly swings emerging between regions, research reveals.

ARLA Propertymark’s latest data shows Scotland is leading for gains, while several English areas and London have moved backwards.

Average agreed rents in Scotland reached £1,123 in March, up 4.95% on February.

Northern Ireland followed with a 3.99% rise to £887 from £853, while Wales edged up just 0.10% to £1,044.

PRS is dynamic

The organisation’s president, Megan Eighteen, said: “The rental market remains dynamic across many regions when viewed on a month-by-month basis.

“Price fluctuations are driven by a range of factors, including the volume and type of properties available at any given time, as well as local employment opportunities and their influence on demand.”

She added: “Overall, rental inflation has been slowing since late 2024 on a year-on-year basis.

“At present, it is still too early to determine the future direction of the rental market.

“A wide range of variables remain in play, including the full impact of recent legislative changes, which has yet to be realised, alongside broader economic pressures that have not yet fully filtered down to consumers.”

Where rents fell

According to the data, rents in London slipped 1.48% month on month, from £2,226 to £2,193, and the East Midlands fell 4.67% to £979.

The North East dropped 5.07% to £862, and the South West also declined by 4.59% to £1,309.

However, the West Midlands held at £1,040, unchanged between February and March.

The East of England posted a marginal 0.30% increase to £1,328.

Household incomes rise

For household income, ARLA Propertymark says that in Wales, the typical salary needed rose to £31,320 from £29,970, a 4.50% increase.

Scotland also increased, up 3.79% to £33,690.

However, Northern Ireland recorded the largest fall in required earnings, down 5.94% to £26,610 from £28,290.

London also eased, with the salary benchmark dipping 1.48% to £65,790.

Across English regions, the North West rose 1.87% to £32,670, while Yorkshire and Humberside increased 0.95% to £28,350.

The South East remained at £44,850.