The annual salary required to rent an average-priced home in London jumped by 6.4% year on year to £74,520 in July.
The latest salary and rental tracker from Propertymark shows that the capital recorded the strongest monthly growth in average rents of all UK regions, up by 4.2% to £2,484.
The North West saw the second-largest monthly increase, with average rents rising 1.9% to £1,131, while the salary needed increased from 3.8% year on year to £33,930.
Wales recorded the largest monthly rental decline in average rents, down by 0.9% to £1,000.
It was also one of the few markets to see an improvement in tenant affordability year-on-year, with the salary needed falling 1.7% to £30,000.
Other regions to see a monthly fall in average rents included 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%).
Average rents increased month on month in the West Midlands (+1.7%), the South East (+0.8%) and Scotland (+0.2%).
Association of Residential Letting Agents (ARLA) Propertymark president Kim Lidbury says: “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.”
