New report shows seasonal easing in rents, with London bucking the trend
Month-on-month rents fell across most UK regions in January, but the data suggests little meaningful improvement in underlying affordability for tenants.
Figures from Propertymark’s latest Rental Price and Average Salary Tracker point to a clear seasonal slowdown in the private rented sector. Average agreed rents dropped notably in the North East (−10.0%), South West (−8.1%), Yorkshire and Humberside (−7.4%), and Wales (−6.1%), reflecting softer demand after the Christmas period and reduced competitive bidding for properties.
For mortgage professionals and landlords, the report underlines that these short-term rent reductions have yet to translate into significant easing in income thresholds. Salary requirements – the typical annual income referencing agencies require for a tenancy to be considered affordable – showed only modest overall movement on a year-on-year basis, with several regions still seeing increases in the income needed to rent.
London stood out as the main outlier to the national pattern. Average rents in the capital rose by 3.7% month-on-month, even as required salaries edged down slightly compared with a year earlier. The divergence between London and other regions highlights the capital’s continued tight supply and strong underlying demand, factors that remain central to landlord returns and lender risk assessments.
The tracker also points to a more fragmented market picture. National averages are concealing sharp local variations, with some renters experiencing short-term relief on monthly payments, while others continue to face higher costs and constrained choice. For buy-to-let lenders and intermediaries, this uneven landscape may feed through into more localised stress-testing outcomes, portfolio performance, and risk-based pricing.
“January’s data points to a rental market that is clearly responding to seasonal demand dynamics, with widespread month-on-month rent reductions signalling increased price sensitivity among tenants and a softening of competition in many regions,” said Megan Eighteen (pictured right), president of industry body ARLA Propertymark. “However, this short-term easing should be viewed in context.
“Despite notable monthly declines, the annual salary required to secure a rental property has remained broadly stable or increased in several areas, underlining that affordability pressures remain deeply embedded. Structural issues, particularly constrained supply, continue to limit the extent to which falling rents can deliver sustained relief for renters.
“As a result, January’s figures reflect a pause rather than a turning point. While renters in some regions may experience temporary breathing space, lasting improvements in affordability will depend on increased rental stock and more balanced supply-and-demand conditions, rather than seasonal fluctuations alone.”
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