It’s been suggested that the typical annual salary needed to rent a property in London is now nearing £75,000.
Propertymark, the letting agents’ trade body, says there’s been a sharp rise in private rents in the capital, up 4.2% month-on-month from £2,385 to £2,484.
The data includes a calculation that a typical salary needed to secure the average-priced rental home in London has risen from £70,050 a year ago to £74,520 now.
The North West saw the second-largest monthly increase, with average rents up from £1,110 to £1,131, up 1.9%. The salary needed by tenants looking to rent in the region is also up from £32,700 to £33,930.
By contrast, Wales recorded the largest monthly rental decline, with average rents falling very slightly from £1,009 to £1,000.
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%.
The report analysed the average agreed rental prices alongside the typical average annual salary required by referencing agencies to affordably rent across various regions.
For Britain as a whole, the average monthly rent currently stands at £1,544, reflecting an average annual change of 1.7%.
The average annual salary needed to rent across Britain is currently £46,320.
ARLA Propertymark president Kim Lidbury says: “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.”
