Rents are rising faster as the supply of homes to rent shrinks. Zoopla's latest Rental Market Report, published in September 2026, shows a tighter market, with fewer homes available and more people competing for them. Here are the key points.
According to Zoopla, the average rent for a new let in the UK is £1,343 a month. That is 2.6% higher than a year ago, or roughly £30 more. Outside London the average is £1,097, up 2.5%.
The national figure understates what many people are seeing. Zoopla found that rents are rising faster than the national average in around 75% of local areas. It also says there are about 25% fewer homes to rent than before the pandemic.
The UK rental market has tightened for two reasons.
Zoopla links this to higher mortgage rates, which are making it harder for first-time buyers to get onto the property ladder. Many of them are renting for longer.
Zoopla's data shows rents rising fastest where supply is shrinking. In London, rental growth has reached 2.9%, up from 1.7% a year earlier, and the number of homes to rent is 6% lower. Inner London is under the most pressure. Availability there is down 13%, and rental growth is running at 3% to 4%.
Higher mortgage rates are a big part of the London story. Zoopla estimates the average London buyer needs an extra £35,500 for a deposit to keep repayments unchanged, almost twice the £18,200 needed by the average UK buyer.
Yorkshire & Humber has also seen a sharp rise in rental growth, with 12% fewer homes available than a year ago. In Wales, the number of homes to rent has grown by 7%, which has slowed rent rises.
There is a lot of interest in how the Renters' Rights Act is affecting the market in England. Zoopla points to Scotland, which has operated under a similar system for some years. Scotland is seeing the same pattern of fewer homes to rent and higher rental growth. Zoopla concludes that supply and demand are shaping rents more than new regulation.
Rental growth over the last six months has run at an annualised rate of around 4%, and Zoopla expects the market to stay sensitive to small changes in supply. It also describes the shortage of rental homes as structural. Every region has fewer homes to rent than before the pandemic, which will keep rents rising faster than they otherwise would.
With demand this strong, now is a good time to explore your options. Find out how CHBL can help you let your property.
Source: Zoopla Rental Market Report, September 2026. Figures are Zoopla's and were correct at the time of publication.
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