UK rents are now up by 2.2% year-on-year, compared with 3.3% twelve months ago, and the supply-demand gap has narrowed sharply.<\/p>\n
That\u2019s because demand for rented homes has come down by around 20% over the last 12 months, which is a six-year low. Zoopla attributes the fall to two main structural changes: significantly lower net migration and a rise in first-time buyer activity. The latter has been driven by improved mortgage affordability – as rates come down, more renters become homeowners, freeing up rental stock in the process.<\/p>\n
That stock is now feeding back into the market. The number of homes available to rent is up 15% year-on-year, and the average estate agency branch now has 14 properties to let, which is a marked improvement from its 2022 low of just eight. While still slightly below pre-pandemic norms, it is easing the shortages that were occurring in many areas and cooling rental inflation.<\/p>\n
As a result, rental homes are spending longer on the market. The average time to secure a let has risen to 17 days, the highest since 2019. Scotland currently has the quickest turnarounds at 14 days, while the West Midlands is at the lower end at 19 days. This, says Zoopla, is an indicator of a stabilising market rather than a weakening one, as competition remains healthy, but just not at the frenetic levels seen in recent years.<\/p>\n
There are, as ever, some striking regional differences. The biggest increases continue to be in more affordable markets, where rents are in better alignment with wages. The North East leads the UK with its 4.5% annual growth, followed by the North West at 3.2%. These regions have consistently offered better value for renters, as well as higher yields for investors, and there is still room for rents to edge up a little further without meeting resistance.<\/p>\n
Some towns and cities are performing even more strongly. Carlisle (8.1%), Chester (7.4%) and Motherwell (7%) are among the fastest-risers, and highlight the growth capacity of lower-value locations. Meanwhile, some areas that had overheated are now cooling. Birmingham and Dundee have recorded slight declines for new lets, while London – still the country\u2019s most expensive rental market by some distance – is growing by as little as 1.6%.<\/p>\n
It means many BTL investors are looking beyond the more traditional southern hotspots and focusing on the better-performing North.<\/p>\n
Executive Director Richard Donnell says 2025 was a year in which the market \u201cmade a big stride back towards normality\u201d, giving renters improved choice and reducing the intensity of bidding competition. Looking ahead, he expects rents for new lets to rise by around 2.5% in 2026, with supply and demand remaining in better balance.<\/p>\n
The cost of buying a home is still a key barrier for many households to getting on the housing ladder, which Zoopla says will continue to support demand for rented property next year. And while some landlords are starting to re-enter the market, Zoopla does not expect a surge in new supply. If sales activity strengthens, some landlords may even be tempted to offload previously retained properties, which could further tighten rental stock in some areas.<\/p>\n
In addition, the effect of the Renters\u2019 Rights Act on the rental market is not yet known. The first phase of it is due to come into force in May next year, and it may not be until some time after that before there is any real clarity.<\/p>\n","protected":false},"excerpt":{"rendered":"
Zoopla\u2019s latest Rental Market Report shows the UK market is at its most balanced since before the pandemic, with more homes available, healthier levels of competition between tenants, and rental growth easing back to more sustainable levels. UK rents are now up by 2.2% year-on-year, compared with 3.3% twelve months ago, and the supply-demand gap… Read more »<\/a><\/p>\n","protected":false},"author":4233,"featured_media":6094101,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[179,4,59,766],"tags":[719],"class_list":["post-6106913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-expert-advice","category-investment","category-trending-news","category-uk-rental-market","tag-uk-rents"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6106913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/4233"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=6106913"}],"version-history":[{"count":4,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6106913\/revisions"}],"predecessor-version":[{"id":6106917,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6106913\/revisions\/6106917"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/6094101"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=6106913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=6106913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=6106913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}