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

London Renters Now Need £74,520 Salary for Average Property

Prospective tenants in London now need an annual salary of £74,520 to afford the average-priced rental property, according to the latest figures from Propertymark. This salary requirement has increased by 6.4% compared to a year ago, when it stood at £70,050.

The average agreed monthly rent in London rose by 4.2% in the latest month, moving from £2,385 to £2,484. Propertymark’s report compares average agreed rents with the typical annual salary that referencing agencies would require a tenant to earn to afford a property at that rental level.

For letting agents and inventory clerks, these figures highlight the ongoing affordability challenges faced by tenants in the capital. The data also shows regional differences in rent and salary requirements across the UK.

In the North West, the average agreed monthly rent increased by 1.9% from £1,110 to £1,131, with the representative annual salary required rising to £33,930, up 3.8% from £32,700 a year earlier. In contrast, Wales saw its average agreed monthly rent fall by 0.9% from £1,009 to £1,000, and the representative salary requirement dropped by 1.7% to £30,000, compared with £30,510 previously.

Other regions experienced mixed monthly rent movements. The West Midlands saw a 1.7% increase, the South East 0.8%, and Scotland 0.2%. Meanwhile, rents fell by 1.1% in the East Midlands, 0.9% in the North East, 0.7% in the South West, 0.2% in the East of England, and 0.1% in Yorkshire and Humberside.

According to Propertymark, London continues to lead the market with the strongest monthly increase in rental prices, which has driven a higher representative salary requirement for prospective tenants. The report also notes that year-on-year rental growth is moderating compared to previous years, but demand for privately rented homes continues to outstrip supply, keeping rents historically high.