London rental affordability: £74,520 salary needed for average home

According to the latest salary and rental tracker from Propertymark, the annual salary required to rent an average-priced home in London rose by 6.4% year-on-year to £74,520 in July. The capital also saw the strongest monthly growth in average rents among all UK regions, increasing by 4.2% to £2,484.

Rental trends varied significantly across the UK. The North West experienced the second-largest monthly rent increase at 1.9%, bringing the average to £1,131 and the required annual salary to £33,930. Conversely, Wales saw the largest monthly decline in average rents, falling 0.9% to £1,000, which also resulted in a 1.7% year-on-year decrease in the required salary to £30,000.

Kim Lidbury, president of ARLA Propertymark, noted that while year-on-year rental growth is moderating compared to previous years, demand for privately rented homes continues to outstrip supply. Lidbury stated that until more quality homes enter the sector and policies support landlord investment, meaningful reductions in rental costs are unlikely.