Summary: Rental affordability has improved notably in London and the North West, with the representative salary needed to rent an average-priced home falling significantly in both regions despite some rent increases. Other parts of the UK show mixed trends, with rents rising modestly in some areas and falling in others, while the salary requirements generally decline.
Rental Affordability Improves in London and the North West
Landlords across the UK are experiencing varied rental market conditions, with salary requirements to rent average-priced homes decreasing in most regions over the past year, according to Propertymark. London recorded one of the sharpest improvements in affordability in June 2026, even though rents continued to rise month-on-month.
In London, the representative annual salary needed to secure an average-priced rental property dropped from £86,250 in June 2025 to £71,550 in June 2026, a 17% decrease. Meanwhile, average rents in the capital increased by 3.4%, from £2,307 in May to £2,385 in June.
Affordability Pressures Persist
Kim Lidbury, president of ARLA Propertymark, highlighted the uneven pace of rental market changes across the UK. She noted that while rents are rising in London, the North West, and the South East, other regions are seeing stable or slightly declining prices.
Lidbury added that despite the fall in typical salary requirements in most regions, affordability pressures remain significant due to rents staying well above historic levels and demand for quality rental homes continuing to exceed supply.
Regional Variations in Rent and Salary Requirements
The North West experienced a 17.5% annual reduction in the salary needed to rent an average-priced home, falling from £40,350 to £33,300, despite rents rising from £1,087 in May to £1,110 in June.
Yorkshire and Humberside saw a 14.5% drop in salary requirements, from £33,900 to £28,980, alongside a slight monthly rent decrease from £976 to £966.
In the South East, the salary needed declined by 8.3% to £45,390, even as rents increased from £1,488 to £1,513.
Scotland recorded the largest monthly rent fall, from £1,257 to £1,186, although the salary needed rose slightly from £35,220 to £35,580.
Wales saw average rents dip marginally to £1,009, with the salary requirement falling from £31,140 to £30,270.
Other Regional Trends
The East Midlands experienced a small rent rise to £993, with the salary needed decreasing slightly to £29,790. The East of England saw rents increase to £1,351, while the salary requirement dropped to £40,530.
In the North East, rents rose modestly to £883, with the salary needed falling to £26,490.
The South West recorded the highest rent increase, from £1,274 to £1,291, alongside a salary requirement decrease to £38,730.
The West Midlands experienced a slight rent fall to £1,040, with the salary needed dropping to £31,320.
Northern Ireland reported the second-highest average rent at £1,469, with a representative salary requirement of £44,070.
Supporting Landlords with Compliance and Management
As rental markets evolve and affordability fluctuates, landlords must stay vigilant in managing their properties and compliance obligations effectively. TLA membership offers access to practical compliance resources and guidance tailored to the changing private rented sector, helping landlords keep documentation and records up to date.
TLA is currently BETA testing ORBIT™, its new property management and compliance platform. ORBIT™ is designed to assist landlords and letting agents in organising properties and portfolios, managing important rental documents, and recording key actions, all within one system. This can be particularly useful for monitoring rental market changes and maintaining evidence of compliance activity.
Members can explore TLA membership and learn more about ORBIT™ BETA access to support their property management and compliance needs.
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