How much do you need to earn to afford the average rent?

Rental growth is slowing nationally but there are more affordable parts of the UK where rents are rising above the level of inflation and you will need higher wages to keep up.

The rental market has been hit in recent months by new regulations, while lower mortgage rates are affecting supply as more first-time buyers can afford to get on the property ladder.

This is good for renters but may be bad for landlord profits as it is having an impact on the level of rent they can charge.

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Property website Zoopla’s latest Rental Market Report shows demand for rented homes has fallen by a fifth over the past year and is the lowest for six years.

Meanwhile, there are 15% more homes for rent than last year, attributed to landlord exits, boosting choice for renters.

UK rents are just 2.2% higher over the past 12 months compared with 3.3% a year ago.

There are regional differences though and more affordable area, where there are lower levels of supply, are seeing high rates of growth.

Separate research by estate agency trade body Propertymark suggests that this volatility means tenants in these more affordable areas may need to earn more to keep up with increases.

What is happening in the UK rental market?

The traditional imbalance between supply and demand in the rental market has been hit this year as more tenants have been able to afford mortgages to get on the property ladder.

Zoopla also highlights a sharp decline in net migration.

Landlords and letting agents are having a tougher time renting out homes, with the average home staying on the market for 17 days before being rented. This is almost a fifth higher than a year ago and 42% longer than during the demand boom for rented homes during the pandemic.

These factors have hit rental growth.

At a country and region level, rents are rising fastest in the North East, up by 4.5% and by 3.2% in the North West, while growth is weakest in London at 1.6%.

The changes in supply and demand do not play out equally across the country. Some local markets are registering a decline in rents for new lets, with rents 1.5% lower than a year ago in the Birmingham and down 1% in Dundee, according to Zoopla.

However, rents are rising fastest in Carlisle - up 8.1% - and by 7.4% in Chester and 7% in Motherwell.

These differences reflect the affordability of rents relative to local incomes, as well as demand and supply, said Zoopla.

Commenting on the report, Richard Donnell, executive director at Zoopla said: “The rental market has made a big stride back towards normality over 2025 after a prolonged period of sky-high demand and a lack of homes for rent.

“This is welcome relief for renters who can expect to see a greater choice of homes, slower rent increases and a less competitive market.

"However, the high costs of buying a home remain a barrier to many renters, which will support demand for renting over 2026. While there are signs that landlords are buying homes again, we do not expect a big increase in supply, meaning rents are set to increase by 2.5% 2026.”

How much do you need to earn to afford the average rent?

These regional rental differences are having an impact on how much tenants need to earn to afford their rent.

Propertymark analysed the average annual salary needed to rent a home in November 2024 and November 2025 based on the average required salary to pass referencing checks in the UK at 30 times the monthly rent.

The organisation found that while London may have the most expensive rents on average at £2,208 per month, tenants don’t actually currently need their earnings to increase to keep up with the changes.

In fact, a 1.1% decline in the average rent required in London means tenants need a salary of £66,240 instead of £66,990.

But there are some parts of the UK where tenants will need to be earning more to keep up with rent hikes.

For example, average rents are up 3.3% annually in the West Midlands, so a tenant would need a typical salary of £35,010 - up from £33,900 in November 2024.

Across the UK, the average rent is £1,525 per month, which would require an annual salary of £45,750.

Megan Eighteen, president of the Association of Residential Letting Agents, said: “Seasonal pressures are clearly influencing the market as we move into the pre-Christmas period, with many tenants aiming to secure a home before the end of the year. This surge in demand is amplifying short-term rent increases in several regions, even though the underlying year-on-year trends remain relatively steady.

“What we’re seeing is not a fundamental shift in affordability, but a seasonal squeeze layered on top of an already tight rental landscape. Unless more homes become available to rent, rent levels will continue to place a significant strain on households looking to move at peak times of the year.”