Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

London Rental Affordability Improves as Required Salary Drops 17%

The salary required to rent an average home in London has fallen by 17% year-on-year, according to Propertymark’s latest Rental Price and Average Salary Tracker. The representative annual salary needed to secure an average-priced rental property in London dropped from £86,250 in June 2025 to £71,550 in June 2026.

This marks the largest improvement in rental affordability among major UK regions. The North West also saw a notable change, with the typical salary requirement falling 17.5% year-on-year from £40,350 to £33,300.

Scotland experienced the most substantial monthly rental decline, with average rents falling from £1,257 to £1,186 between May and June, a decrease of 5.7%. However, the salary required to secure a home in Scotland remained largely unchanged, rising just 1% year-on-year to £35,580.

Regional trends in June showed mixed results. London, the North West, and the South East recorded monthly rent increases of 3.4%, 2.1%, and 1.7% respectively. In contrast, Wales and the West Midlands saw rents fall by 0.4%, while Yorkshire and Humberside experienced a 1% decline.

Across the UK, the average monthly rent stood at £1,500 in June, up 2.3% from the previous period. The representative annual salary needed to rent an average-priced home nationally was £45,000.

Kim Lidbury, ARLA Propertymark president, stated that while rents continue to rise in some areas, other regions are experiencing more stable pricing or modest declines. Lidbury noted that the typical salary needed to secure a rental property has fallen across most regions compared with a year ago, with London and the North West seeing particularly notable improvements. However, affordability pressures remain significant as rents continue to sit well above historic levels and demand for quality rental homes continues to outstrip supply. The sector is also seeing ongoing consolidation activity among lettings agencies.

Lidbury emphasised that increasing the supply of privately rented homes would be essential to improve tenant choice and help moderate rental costs over time. The data suggests that while affordability has improved in some regions, the rental market remains under pressure from structural supply constraints.