Rental price and average salary tracker – July 2026
Year-on-year Rental Price Growth Moderates, Yet High Demand and Limited Supply Continue to Push Rents Higher
- London recorded the strongest monthly rental growth, with average rents rising from £2,385 to £2,484 (+4.2% month-on-month). As a result, the representative annual salary needed to secure the average-priced rental home increased from £70,050 to £74,520 (+6.4% year-on-year).
- The North West saw the second-largest monthly increase, with average rents rising from £1,110 to £1,131 (+1.9% month-on-month), while the representative salary needed increased from £32,700 to £33,930 (+3.8% year-on-year).
- Wales recorded the largest monthly rental decline, with average rents falling from £1,009 to £1,000 (-0.9% month-on-month). It was also one of the few regions to see an improvement in affordability year-on-year, with the representative salary needed falling from £30,510 to £30,000 (-1.7%).
- Regional rental trends remained mixed, with rents increasing in London (+4.2%), the North West (+1.9%), the West Midlands (+1.7%), the South East (+0.8%) and Scotland (+0.2%), while Wales (-0.9%), the North East (-0.9%), the South West (-0.7%), the East Midlands (-1.1%), the East of England (-0.2%) and Yorkshire and Humberside (-0.1%) all recorded monthly declines.
This monthly report provides a comprehensive analysis of the current private rented sector by examining the average agreed rental prices alongside the typical average annual salary required by referencing agencies to affordably rent across various regions. By exploring these key indicators, we aim to shed light on the affordability and accessibility of private rented housing relative to income levels, offering valuable insights, especially for those navigating the dynamic landscape of the UK’s housing market.
July 2026:
| Location | Average rental price | Representative average annual salary needed to secure the average-priced home (before tax and any deductions) |
| Scotland | £1,188 | £35,640 |
| Wales | £1,000 | £30,000 |
| East Midlands | £982 | £29,460 |
| East of England | £1,349 | £40,470 |
| London (inner and outer) | £2,484 | £74,520 |
| North East | £875 | £26,250 |
| North West | £1,131 | £33,930 |
| South East | £1,525 | £45,750 |
| South West | £1,282 | £38,460 |
| West Midlands | £1,058 | £31,740 |
| Yorkshire and Humberside | £965 | £28,950 |
July 2025 (for comparison):
| Location | Average rental price | Representative average annual salary needed to secure the average-priced home (before tax and any deductions) |
| Scotland | £1,162 | £34,860 |
| Wales | £1,017 | £30,510 |
| East Midlands | £984 | £29,520 |
| East of England | £1,374 | £41,220 |
| London (inner and outer) | £2,335 | £70,050 |
| North East | £866 | £25,980 |
| North West | £1,090 | £32,700 |
| South East | £1,512 | £45,360 |
| South West | £1,266 | £37,980 |
| West Midlands | £1,055 | £31,650 |
| Yorkshire and Humberside | £955 | £28,650 |
Change seen in the average salary required year on year:
| Location | July 2025 – typical annual salary needed to secure a home (before tax and deductions) | July 2026 – typical annual salary needed to secure a home (before tax and deductions) | % change in salary needed |
| Scotland | £34,860 | £35,640 | +2.2% |
| Wales | £30,510 | £30,000 | -1.7% |
| East Midlands | £29,520 | £29,460 | -0.2% |
| East of England | £41,220 | £40,470 | -1.8% |
| London (inner and outer) | £70,050 | £74,520 | +6.4% |
| North East | £25,980 | £26,250 | +1% |
| North West | £32,700 | £33,930 | +3.8% |
| South East | £45,360 | £45,750 | +0.7% |
| South West | £37,980 | £38,460 | +1.3% |
| West Midlands | £31,650 | £31,740 | +0.3% |
| Yorkshire and Humberside | £28,650 | £28,950 | +1.1% |
Average monthly rental price month-on-month comparison (June 2026 – July 2026):
| Location | Average monthly rental price – June 2026 | Average monthly rental price – July 2026 | Percentage change (difference from June to July) |
| Scotland | £1,186 | £1,188 | +0.2% |
| Wales | £1,009 | £1,000 | -0.9% |
| East Midlands | £993 | £982 | -1.1% |
| East of England | £1,351 | £1,349 | -0.2% |
| London (inner and outer) | £2,385 | £2,484 | +4.2% |
| North East | £883 | £875 | -0.9% |
| North West | £1,110 | £1,131 | +1.9% |
| South East | £1,513 | £1,525 | +0.8% |
| South West | £1,291 | £1,282 | -0.7% |
| West Midlands | £1,040 | £1,058 | +1.7% |
| Yorkshire and Humberside | £966 | £965 | -0.1% |
Kim Lidbury, President of ARLA Propertymark (Association of Residential Letting Agents), comments:
“The latest figures show that rental markets continue to vary considerably regionally, with some experiencing further rent growth while others remain relatively stable or have seen modest monthly reductions.
“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. Elsewhere, regions such as the North West and West Midlands also recorded rental growth, while Wales and parts of northern England saw rents ease slightly over the month.
“While it’s encouraging to see year-on-year rental growth moderating compared with the sharp increases seen in recent years, the underlying challenge remains unchanged. Demand for privately rented homes continues to significantly outstrip the supply available, meaning rents remain historically high despite slower rates of growth. 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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