Lack of Supply Keeps Upward Pressure on Rents
More ‘affordable’ areas see rents rise two times faster than the national average
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Rents are rising 5% on average in more affordable areas where rents are below £750pcm – over twice the national average of 2.1%
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Regionally, Carlisle (+9.1%), Kilmarnock (+9%) and Halifax (+6.5%) are among the fastest-rising markets where rents are rising quickly off a lower base
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On the other hand, the likes of Bournemouth (-1.7%), Nottingham (-1.5%) and Birmingham (-1.1%) have each seen rents fall, with weaker demand and affordability pressures keeping rental growth lower across most UK cities
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Despite this, average earnings nationally are growing at 4% YoY – nearly twice the rate of UK rental inflation
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Each UK region/country has 20-30% fewer homes to rent than before the pandemic – a lack of new investment is placing upward pressure on rents while limiting choice for renters
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Enquiries per rented home at its lowest level of 6 years – hitting 5.6 enquiries per rental listing
Rental prices in traditionally affordable places are rising at double the average rate of rental inflation, according to Zoopla’s latest Rental Market Report.
The report reveals that in areas where average rents are £750pcm or less, rents are rising by 5% on average. This is over twice the national average of 2.1%, with the report also finding that demand for rented homes has fallen to its lowest level for 6 years (2020).
However, there is relief for renters in other parts of the country – with rents nationally rising at 2.1% YoY, down from 2.6% YoY last April. At the same time, average earnings are growing at 4%, marking 18 months that earnings have outpaced rental growth and reflecting a wider gradual improvement in the affordability of renting. With average earnings rising at 4%, this reflects increased rental affordability for many Brits, especially those in more expensive areas.
The areas facing the highest increases in rents is Carlisle (9.1%), Kilmarnock (9.0%) and Halifax (6.5%) postal areas, while the Birmingham (-1.1%), Nottingham (-1.5%) and Bournemouth (-1.7%) postal areas are seeing rents fall as affordability caps growth in higher-cost centres.
Despite the current pace of growth, rents in these faster-rising markets remain well below the national average in absolute terms. In Carlisle, Kilmarnock and Halifax, average rents of around £700 are 45-50% below the UK average.
In most areas where rents are above £1,250pcm, the pace of growth is at or below the national average, as the high cost of renting limits how much further rents can rise. Each UK region has 20-30% fewer homes to rent than before the pandemic, with a lack of new investment placing upward pressure on rents while limiting choice for renters.
Affordability improving, but gains are fragile without more supply
While wider affordability is improving, this is being held back by lower supply compared to pre-pandemic. However, competition for rental properties continues to ease, with an average of 5.6 enquiries per rental listing in May 2026, down from a peak of almost 16 in 2022.
London is the only region bucking the trend of weaker demand for rented homes. The capital is the only area to see an increase in demand, with enquiries 6% higher year on year. Higher mortgage rates have also kept the capital’s would-be first time buyers renting. Additionally, with no change in the number of homes available to rent, rent inflation has risen to 2.2%, from 1.9% a year ago, with the average rent now £2,206 per month. This shows how price pressure in the rental market is also impacting the sales and buying markets.
Zoopla expects rental inflation of 2-3% over the remainder of 2026. But without a meaningful increase in the supply of homes to rent, this improvement to affordability will remain fragile and renters in lower-cost areas, who have the fewest alternatives, will continue to bear the greatest burden.
Rental Inflation by Region: Highest and Lowest Postal Areas
|
Region / Country |
Avg Rent (pcm) |
Annual Change |
Postal Area |
Avg Rent (pcm) |
Annual Change |
Highest / Lowest |
|---|---|---|---|---|---|---|
|
North East |
£766 |
3.8% |
Darlington (DL) |
£634 |
3.9% |
Highest |
|
Sunderland (SR) |
£643 |
2.5% |
Lowest |
|||
|
North West |
£961 |
3.3% |
Carlisle (CA) |
£739 |
9.1% |
Highest |
|
Manchester (M) |
£1,186 |
2.4% |
Lowest |
|||
|
Yorks & Humber |
£865 |
2.8% |
Halifax (HX) |
£746 |
6.5% |
Highest |
|
Bradford (BD) |
£751 |
1.5% |
Lowest |
|||
|
East Midlands |
£920 |
0.8% |
Lincoln (LN) |
£874 |
5.8% |
Highest |
|
Nottingham (NG) |
£927 |
-0.9% |
Lowest |
|||
|
West Midlands |
£977 |
0.4% |
Telford (TF) |
£909 |
6.3% |
Highest |
|
Birmingham (B) |
£1,035 |
-1.1% |
Lowest |
|||
|
East of England |
£1,250 |
1.8% |
Ipswich (IP) |
£1,035 |
3.1% |
Highest |
|
Peterborough (PE) |
£932 |
-1.6% |
Lowest |
|||
|
London |
£2,206 |
2.2% |
Bromley (BR) |
£1,708 |
5.2% |
Highest |
|
Ilford (IG) |
£1,772 |
0.2% |
Lowest |
|||
|
South East |
£1,391 |
1.6% |
Oxford (OX) |
£1,520 |
3.8% |
Highest |
|
Maidstone (ME) |
£1,244 |
-0.4% |
Lowest |
|||
|
South West |
£1,152 |
2.4% |
Dorchester (DT) |
£1,069 |
5.3% |
Highest |
|
Bournemouth (BH) |
£1,235 |
-1.7% |
Lowest |
|||
|
Wales |
£953 |
1.5% |
Llandrindod Wells (LD) |
£712 |
5.9% |
Highest |
|
Swansea (SA) |
£847 |
0.0% |
Lowest |
|||
|
Scotland |
£884 |
1.4% |
Kilmarnock (KA) |
£656 |
9.0% |
Highest |
|
Aberdeen (AB) |
£731 |
0.8% |
Lowest |
Richard Donnell, Executive Director at Zoopla, said:
“We’re seeing a split in how different regions and cities are responding to changes in the supply and demand for rented homes. Our latest report shows just how fast the gap in rents is closing between more affordable regions and major cities where rents are highest. Rent inflation is more subdued across most of the UKs major cities due to already stretched affordability levels for renters”
“While demand for renting is at its lowest level for six years, low levels of new investment in private rented housing means an ongoing scarcity of homes for rent which is keeping an upward pressure on rents.”
“It’s positive that earnings continue to grow faster than rents at a national level but the experience of renters in local areas varies widely and is a challenge for lower income renters. Growing the supply of rental homes is the single most effective way to improve affordability for private renters, particularly those in traditionally more affordable areas who have the fewest choices and are facing the sharpest increases.”
Julie Ford, Property Expert and Founder of Lettings Advice Service, said:
“The rental market is settling into a more sustainable rhythm, with enquiries per property easing far below the recent peak in demand. This isn’t a sign of falling demand, tenants still need homes, but many are maybe choosing stability under the new Renters Rights Act, reducing churn rather than reducing need.
“For renters, act fast but stay realistic. Good properties move quickly, but renters should
still take time to understand total monthly costs, including utilities and council tax. It’s also important to get your paperwork ready early. Having references, ID and proof of income prepared can help you move quickly in a competitive market and have a holding deposit ready to transfer.
“For landlords, reviewing your property regularly is important. Staying aligned with local market trends helps ensure the property lets quickly. It’s also important to present the property well to attract higher quality tenants. Fresh paint, clean spaces and small repairs can significantly reduce void periods.”
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