London renters need £74,520 salary to afford the average‑priced rental property, according to the latest figures released by ARLA Propertymark.
Rising cost of renting in the capital
The report shows the representative annual salary requirement in London rose 6.4% from £70,050 a year earlier. At the same time, the average agreed monthly rent increased 4.2%, moving from £2,385 to £2,484.
The calculation matches typical rents with the income that letting agencies would deem necessary for a tenant to qualify.
Kim Lidbury, president of ARLA Propertymark, said the data “show that rental markets continue to vary considerably regionally.” She added that “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.”
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While the capital sees the steepest rise, other parts of the country display mixed trends. The North West posted the second‑largest monthly rent increase, up 1.9% to £1,131, with a required salary of £33,930—a 3.8% jump from the previous year.
In contrast, Wales experienced a 0.9% drop in average rent, settling at £1,000, and its representative salary fell 1.7% to £30,000. Other regions saw modest shifts: the West Midlands rent grew 1.7%, the South East 0.8%, and Scotland 0.2%.
Declines were noted in the East Midlands (‑1.1%), North East (‑0.9%), South West (‑0.7%), East of England (‑0.2%) and Yorkshire and Humberside (‑0.1%).
What the numbers mean for tenants
Demand for privately rented homes still far exceeds the supply of available units, a factor that keeps rents historically high even as growth rates ease.
Lidbury noted that “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.”
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Renters feel the pressure.
Looking ahead, the persistent gap between demand and supply could keep salary thresholds raised, especially in high‑density markets like London. If the supply side does not expand, prospective renters may need to allocate a larger share of their earnings to housing, potentially limiting disposable income for other expenses.
The modest slowdown in year‑on‑year rent growth suggests the market is stabilizing, yet the data still point to a steep climb in required incomes. Policymakers are urged to boost construction of affordable rentals and encourage landlord investment.
For now, the figures serve as a benchmark for both tenants and landlords. Prospective renters in the capital can expect to meet a salary benchmark of roughly £74,500, while those in other regions face lower, though still rising, thresholds. The report provides a snapshot of a market where regional disparities remain pronounced and the pressure on renters continues to mount.
