London and the South East have seen the largest annual decreases in the average salary required to rent a home, according to Propertymark’s latest UK rental market report.
The data revealed that the average salary needed to rent the typical property in London fell by 4.2% between September 2024 and September 2025, while the South East recorded a 2.9% decline.
This shift indicates a softening in rental affordability pressures in these regions, with rents stabilising after several years of strong growth.
By contrast, Yorkshire and Humberside recorded the strongest annual rise in average rent levels, up 8% from £923 to £997, leading to a corresponding increase in the average salary needed to rent in the region.
Northern Ireland also saw a 3.7% rise in the salary required to secure the average home, reflecting higher rental costs.
Scotland experienced a notable month-on-month decrease in rental prices, falling by 4.6% from £1,150 in August 2025 to £1,097 in September.
Meanwhile, the North East remained the most affordable region in the UK, with average monthly rent at £859, requiring a representative annual salary of £25,770.
The report highlighted ongoing variation in rental affordability across the UK.
While rents in London and the South East have eased, other regions such as Yorkshire and Humberside continue to see upward pressure driven by demand and limited supply.
Megan Eighteen, president of ARLA Propertymark, said: “The latest data highlights a clear softening in rental prices across much of the UK, particularly in London and the South East, where affordability pressures have begun to push against rental growth.
“The 4.2% drop in the salary required to rent in the capital reflects a rebalancing in tenant demand and landlord pricing strategy, likely influenced by cost-of-living pressures and increased supply in some urban markets.
“However, regional variation remains significant. Yorkshire and Humberside’s 8% annual increase in rent levels points to growing demand and potentially undersupplied rental stock in those areas. For landlords and investors, this underlines the importance of a granular, region-by-region view when making portfolio decisions.
“Affordability is still a key driver, and we’re likely to see further shifts as interest rates, tenant budgets and broader economic conditions evolve into 2026.”
