Rules and red tape for landlords fuel rising rents

An industry body warns landlords should be encouraged to invest in the private rented sector rather than be “penalised by a continuous bombardment of financial and regulatory hurdles.”

A Propertymark report reveals that although rental prices have peaked and dropped slightly, this reduction is not enough to make rents more affordable, as the average salary needed to rent has continued to rise.

The rental price and average salary tracker shows the North East as the most affordable region to rent, and the South East as the most expensive.

There is a complete undersupply of available homes of all types and tenures

Megan Eighteen, President of ARLA Propertymark (Association of Residential Letting Agents), says more rules and regulations for landlords have caused a rise in rents and an undersupply in the market as landlords choose to leave.

She said: “Year-on-year, rental rises have eased across many areas of the country. Much of the private rented market has reached its peak when it comes to affordability, and coupled with slowly decreasing interest rates, this is starting to make rents soften slightly. However, this will not be enough to bring down rents to more affordable levels across the board in the longer term.

“The private rental landscape is varied across the UK, with trends fluctuating drastically in some instances. However, one fact remains, there is a complete undersupply of available homes of all types and tenures, and other costs to landlords, such as the scrapping of mortgage interest relief and the introduction of endless red tape and licensing schemes, have huge implications across the board and are contributing to the previous spikes seen in raised rent levels.

“Private rented homes have always played a crucial role in housing the nation, and a stream of professional, law-abiding landlords should be encouraged to help keep pace with growing demand rather than penalised by a continuous bombardment of financial and regulatory hurdles.”

London remains the most expensive place to rent in the UK

According to the Propertymark report, Yorkshire and Humberside saw the largest increase in the average salary needed to rent year on year, rising 8.1% from £27,990 in 2024 to £30,270 in 2025.

In second place was the North West, where the salary needed to rent increased by 3.4%, from £33,390 to £34,530.

Northern Ireland also saw a significant rise, with a 3.2% increase from £27,540 to £28,140 in 2025.

London remains the most expensive place to rent in the UK, with average rents at £2,389 in 2025. However, the capital saw the largest decrease in the average salary needed to rent year-on-year, down 1.9% from £73,050 in 2024 to £71,670 in 2025.

Outside London, the South East was the most expensive region to rent, with average rents at £1,497 per month, requiring an annual salary of £44,910.

The North East of England offered the most affordable rental costs, with average rents of £865 per month and a required salary of £25,950.