National rents for newly listed homes are increasing by 2.1% year-on-year, but in the country’s most affordable areas, tenants are facing average increases of 5% or more, Zoopla has found.
Regionally, Carlisle and Kilmarnock are the fastest rising markets, with 9% rent increases year-on-year, while Halifax’s rents have increased by 6.5%.
At the other end of the scale, Bournemouth, Nottingham and Birmingham have each seen rents fall by between 1.1% and 1.7%, with weaker demand and affordability pressures keeping rental growth lower across most UK cities.
Affordability improves
Nationally, the pace at which newly listed rents are rising has slowed from 2.6% last April to 2.1% this year.
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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.
Despite the current pace of growth, rents in these faster-rising markets remain well below the national average. In Carlisle, Kilmarnock and Halifax, average rents of around £700 are 45-50% below the UK average.
In most areas where rents are above £1,250 per month, the pace of growth is at or below the national average, as the high cost of renting limits how much further rents can rise.
Supply and demand dynamics
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.
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.
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 UK’s 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.”
