Private rents across parts of the UK fell sharply at the end of last year as seasonal demand eased but the underlying cost of renting remains high relative to incomes, according to new analysis from Propertymark.

The industry body’s Rental Price and Average Wage Tracker shows pronounced month-on-month declines in several regions in December, masking a picture of stubborn affordability pressures over the longer term.

Nationally, year-on-year movements in both rents and the income required to secure a home were modest, reinforcing the view that recent falls reflect timing rather than a structural shift.

The steepest monthly drops were recorded in Yorkshire and Humberside, where average rents fell by 12.3% between November and December, and in the North East, which saw a 22% decline over the same period. Wales, the West Midlands and the South West also experienced falls of more than 6%. London rents eased by 3.8% month on month, remaining by far the most expensive in the country.

AFFORDABILITY

Despite these short-term movements, the annual picture was relatively stable. In December 2025, the average monthly rent in London stood at £2,125, requiring a representative gross annual salary of £63,750 to secure a typical home.

That salary threshold was down 2.5% on a year earlier but remains significantly higher than elsewhere. In the South East, renters needed an average income of £46,080, while in the East of England the figure was £39,660.

In many regions, the income required to rent edged higher over the year. Northern Ireland recorded the largest annual increase, with the typical salary needed rising by 8.5% to £28,350.

Scotland, the East Midlands and the North East also saw increases while modest declines were recorded in London, the South East and Yorkshire and Humberside.

UNEVEN RENTAL MARKET

Propertymark says that the data point to an increasingly uneven rental market, where national averages conceal sharp local variations.

Some areas appear to be softening quickly as renters become more price-sensitive, while others remain relatively resilient.

Megan Eighteen (main picture, inset), President of ARLA Propertymark, says: “While the private rented sector remains under long-term pressure, recent data shows that some areas have experienced notably sharp falls in rent levels over a very short period.

“These month-on-month declines suggest a cooling in parts of the market as seasonal demand eases and renters become more price-sensitive.”

MORE HOMES NEEDED

But she adds: “However, this should not be mistaken for a broader reset in affordability.

“Even where rents have dipped, the overall cost of renting remains high relative to incomes, and supply shortages continue to limit choice for tenants.

“Without meaningful increases in the number of homes available to rent, any short-term softening is likely to be uneven and temporary, rather than a sign of lasting improvement for renters.