Affordability pressures deepen in Wales and North East as rental divergence widens

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Regional divergence within the UK’s private rented sector has become more pronounced, with new figures from Propertymark showing that affordability pressures are increasingly uneven across the country.

The trade body’s latest data for October 2025 reveals that Wales and the North East saw the sharpest monthly rent rises, while London and Scotland recorded some easing in affordability requirements as average rents fell.

WALES AND NORTH EAST SEE BIGGEST PRESSURES

In Wales, average monthly rents climbed by 3% between September and October, rising from £995 to £1,025. Yet the typical annual salary required to secure a rental property edged down slightly by 0.4% to £30,750.

The North East recorded the strongest month-on-month rent increase of any region, up 6.1% to £911. However, the average salary required to rent dropped by a steep 20.6% year-on-year, from £34,410 to £27,330, suggesting a shift in affordability dynamics rather than an easing in rental costs.

MODEST IMPROVEMENT IN LONDON AND SCOTLAND

London remains the most expensive region to rent in, though there are early signs of softening. The typical salary needed to rent in the capital fell 3.6% year-on-year to £67,290, while rents declined 5.8% in the month to £2,243.

Scotland also saw improvement, with average rents down 3.9% to £1,054 and the required salary slipping 3.4% to £31,620.

Parts of the South similarly saw a slight easing in affordability pressures. In the South East, salaries needed fell by 1.5% to £44,670, while rents were broadly flat at £1,489.

MIDLANDS AND EASTERN REGIONS HOLD STEADY

Rents and income requirements across the Midlands and eastern regions showed limited movement, suggesting greater stability compared with the more volatile northern and southern markets.

In the East Midlands, rents rose 5.6% to £1,046 and salary requirements increased by 1.9% to £31,380. The East of England saw almost no change, with average rents slipping 0.3% to £1,338 and salaries up 0.15% to £40,140.

The West Midlands remained largely unchanged, with salaries down 0.2% to £31,530 and rents flat at £1,051.

BROADER MARKET TRENDS

Across the UK, Propertymark’s figures underline a growing regional divide between markets where rents continue to rise sharply and those where affordability pressures are starting to ease.

The data, drawn from average agreed rents and the typical income required by referencing agencies to afford them, illustrates how affordability is shifting as different regional markets adjust to economic conditions and changing supply.

While affordability has improved marginally in London and Scotland, strong tenant demand and restricted supply continue to push rents higher elsewhere, particularly in parts of Wales and the North East.

MARKET REMAINS RESILIENT

Megan Eighteen, president of ARLA Propertymark, said: “Rents have risen across many parts of the UK, but the market remains active and resilient, underpinned by strong tenant demand.

“Supply is under pressure, with some landlords leaving the sector due to rising costs and regulatory changes, while new professional landlords are entering the market and investing for the long term, helping to bring much-needed stock back into circulation. However, this may not be enough to meet ongoing, growing demand, and support is needed to encourage further investment.

“Rising operational costs, from energy efficiency requirements to maintenance and insurance, are influencing rent levels, but agents and landlords are working hard to keep tenancies fair, sustainable, and stable.

“With the right policy support and continued investment, the private rental sector can continue to provide high-quality homes for tenants while remaining a viable and attractive market for landlords.”

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