The UK rental market remains under pressure, with an industry body warning that landlords must be encouraged to invest in the private rented sector (PRS) rather than be driven out by “a continuous bombardment of financial and regulatory hurdles.”

According to a new Propertymark Rental Tracker, rental prices have peaked in many regions and are starting to soften slightly. However, rents remain far from affordable for many tenants, as the average salary needed to rent continues to rise.

Affordability Crisis Persists

Megan Eighteen, President of ARLA Propertymark, highlighted that while year-on-year rental rises have slowed, the issue of affordability has not eased:  “Much of the private rented market has reached its peak when it comes to affordability, and coupled with slowly decreasing interest rates, this is starting to make rents soften slightly. However, this will not be enough to bring down rents to more affordable levels across the board in the longer term.”

Eighteen pointed to the undersupply of homes of all types and tenures as the underlying problem, compounded by regulatory and tax burdens that discourage landlords from remaining in the sector.

Regional Variations in Rental Affordability

The Propertymark tracker highlights stark differences across the UK:

• London – Still the most expensive rental market, with average rents at £2,389 per month in 2025. Yet, affordability has improved slightly as the salary needed to rent fell by 1.9%, from £73,050 to £71,670.

• South East – The most expensive region outside London. Average rents of £1,497 per month require a salary of £44,910.

• North East – The most affordable region, with rents averaging £865 per month and requiring a salary of just £25,950.

• Yorkshire & Humberside – Saw the sharpest affordability decline, with the salary needed to rent up 8.1% year-on-year, from £27,990 to £30,270.

• North West – Salary requirement up 3.4%, now £34,530.

• Northern Ireland – Up 3.2%, from £27,540 to £28,140.

Regulatory Pressure Driving Landlords Away

Eighteen warned that increasing red tape is a key driver of higher rents:

• Scrapping of mortgage interest relief

• Additional licensing schemes

• New compliance obligations

These, she argued, have had “huge implications across the board” and have contributed to rent spikes by reducing supply.

The Role of the PRS

Propertymark stresses that the PRS is vital to housing the nation. Encouraging professional, law-abiding landlords should be a government priority if supply is to keep pace with demand.  “Private rented homes have always played a crucial role in housing the nation, and a stream of professional, law-abiding landlords should be encouraged to help keep pace with growing demand rather than penalised,” said Eighteen.

Key Takeaways for Landlords

• Rental growth is slowing, but affordability pressures remain acute.

• Regional disparities are widening – Yorkshire & Humberside saw the sharpest decline in affordability, while London eased slightly.

• Regulation continues to bite, pushing landlords out of the PRS and tightening supply.

• Policy solutions must focus on supply – penalising landlords only exacerbates the housing crisis.

📊 Quick Snapshot

• London rents: £2,389 per month, salary needed £71,670.

• South East rents: £1,497 per month, salary £44,910.

• North East rents: £865 per month, salary £25,950.

• Biggest affordability squeeze: Yorkshire & Humberside (+8.1%).