Tenants need £75k salary to rent in London
London saw the strongest monthly rental price rises, driving higher representative salary requirements for tenants, reveals Propertymark's Kim Lidbury.
The annual salary needed to secure an average rental property in London has soared to almost £75,000, it has been revealed.
It follows a sharp rise in average rents in the capital, which have climbed 4.2% month-on-month, from £2,385 to £2,484.
The data from Propertymark’s latest rental price tracker found that London had the strongest monthly rental growth last month.
It means tenants require a substantial salary in order to prove they can afford to rent in the capital.
Rental prices
The tracker suggested that the representative annual salary needed to secure the average-priced rental home in London has increased from £70,050 to £74,520, an increase of 6.4% year-on-year.
The North West saw the second-largest monthly increase, with average rents rising from £1,110 to £1,131, up 1.9% month-on-month. It means the representative salary needed by tenants looking to rent in the region increased from £32,700 to £33,930, a rise of 3.8% year-on-year.
Rental declines
By contrast, Wales recorded the largest monthly rental decline, with average rents falling from £1,009 to £1,000, which is a decline of 0.9% month-on-month.
It was also one of the few regions to see an improvement in tenant affordability year-on-year, with the representative salary needed falling from £30,510 to £30,000, down 1.7%.
Regional trends
Regional rental trends remained mixed, with rents increasing in several areas, including London, up 4.2%, the North West rising 1.9%, the West Midlands up 1.7%, the South East up 0.8% and Scotland up 0.2%.
By contrast, monthly declines were seen in several regions, including Wales, down 0.9%, the North East down 0.9%, the South West down 0.7%, the East Midlands down 1.1%, the East of England down 0.2% and Yorkshire and Humberside down 0.1%.
The report analysed the average agreed rental prices alongside the typical average annual salary required by referencing agencies to affordably rent across various regions.
Average salary
For Britain as a whole, the average monthly rent currently stands at £1,544, which is an average monthly change of 2.8 and an average annual change of 1.7%.
The average annual salary needed to rent across Britain is currently £46,320.
Rents remain historically high despite slower rates of growth.”
Kim Lidbury, President of ARLA Propertymark, says: “The latest figures show that rental markets continue to vary considerably regionally,
“London continues to lead the market, recording the strongest monthly increase in rental prices, which has also driven a higher representative salary requirement for prospective tenants.
“Elsewhere, regions such as the North West and West Midlands also recorded rental growth, while Wales and parts of northern England saw rents ease slightly over the month.
“While it’s encouraging to see year-on-year rental growth moderating compared with the sharp increases seen in recent years, the underlying challenge remains unchanged.
“Demand for privately rented homes continues to significantly outstrip the supply available, meaning rents remain historically high despite slower rates of growth.
“Until more good quality homes are brought into the sector and policies to support investment by landlords, tenants are unlikely to see the meaningful reductions in rental costs that many are hoping for.”
