Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.
UK Rents Fall in 10 of 11 Regions as Affordability Pressures Persist
Average rents fell across almost the entire UK in September, according to new Propertymark figures. The data shows affordability remains a major concern in several regions.
Propertymark's figures show average rents declined in 10 of the 11 regions surveyed. Scotland recorded the biggest monthly drop, with average rents falling 3.4% from £1,174 in August to £1,134 in September. Rents in the North West fell 2.5% to £1,109, while London and the South West both recorded declines of 2.1%.
The East Midlands was the only region to register an increase, with average rents edging up 0.1% to £991.
Affordability Picture Remains Mixed
Despite September's decline, Propertymark's latest rental price and salary tracker reveals a mixed picture for affordability. Scotland recorded the largest annual increase in the income needed to rent, rising 3.4% to £34,020.
London remains the UK's most expensive rental market, with average monthly rents of £2,415. Tenants would need an annual income of £72,450 to meet the report's affordability threshold. That compares with £26,160 in the North East, where average monthly rents stood at £872.
The South East remains the second most expensive region, with average rents reaching £1,491 and an indicative annual income requirement of £44,730.
There were signs of improving affordability elsewhere. Yorkshire and Humberside recorded the biggest annual reduction in the income required to rent, down 3.6% to £28,830. The North West followed, with a 2% fall to £33,270. But income requirements rose by 1.5% in the North East, 1.4% in London and 1.1% in the South West.
ARLA Propertymark: Supply and Landlord Retention Key
Kim Lidbury, president of ARLA Propertymark, said the September figures suggest some pressure in the rental market is beginning to ease, noting the falls in Scotland, the North West and the South West as particularly notable. She added that the wider affordability picture remains mixed, and that a monthly fall in rents does not necessarily mean renting has become more affordable.
Lidbury said increasing rental supply would be essential to improving affordability, and stressed the importance of retaining landlords in the sector. She added that supporting landlords to remain in the sector and invest in rental properties, alongside increasing housing supply, will be key to creating a more stable and affordable market for tenants.
Source: Property Industry Eye