Renters now need a £44,400 salary to afford the average UK property, according to Propertymark’s rental price and average salary tracker.

Its latest figures for December reveal Northern Ireland saw the most dramatic rise in the average salary required year on year, up 8.5% to £28,350, while there was also an increase for renters in the North East – up 3.1% to £29,790 – and Wales – up 2.8% to £33,120. Renters in London saw the biggest drop in salary needed- down -2.5% - to £63,750.

Drop

All regions saw a drop in average rents during December, apart from Northern Ireland and the East Midlands. Several regions experienced a sharp short-term decline as seasonal demand cooled and price sensitivity increased, particularly in Yorkshire and Humberside, which saw a 12.3% drop in the average rent level, and the North East, which witnessed a 22% decline.

However, Propertymark reports that affordability pressures remain entrenched, reinforcing the long-term affordability challenge facing tenants.

Reset

ARLA Propertymark president Megan Eighteen says month-on-month declines 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,” she says. “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.”

Average rent is calculated on the final let price, while the average annual salary needed to rent a home is calculated based on the average required salary to pass referencing checks in the UK, at 30 times the monthly rent. This is then based on the average monthly rental price within that location.

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