📊 The UK rental market is showing clear signs of cooling and rebalancing after several years of rapid growth in rents and intense competition for homes. Here’s the latest data landlords and tenants need to know:
📉 1. Rental Growth Has Slowed Significantly
Recent data from Zoopla’s December 2025 Rental Market Report shows that:
- Average UK rents are now only 2.2% higher than they were a year ago — the slowest annual rent rise in four years.
- The average monthly rent in the UK stands at around £1,320 per month as of October 2025.
- This compares with stronger growth rates of around 3.3% seen a year earlier. Zoopla for Business
Slower rent inflation suggests a cooler rental market compared with recent years.
🏠 2. Demand for Rentals Has Fallen Sharply
According to the same report:
- Demand for rented homes is down by about 20% over the last 12 months — the lowest level seen in six years.
- This drop has been linked to a sharp fall in net migration and improved opportunities for first-time buyers to purchase homes.
- The average time to let a property has increased to about 17 days — the highest level since before 2019. Zoopla for Business
More stock and slower lettings indicate a shift toward a more balanced rental market.
🏷️ 3. Supply Is Increasing — But Still Tight by Historical Standards
The number of homes available to rent has grown by around 15% compared to last year, providing more choice to tenants. However:
- Despite this increase, the total rental stock remains below pre-pandemic averages.
- In many areas, demand still outstrips supply, especially in sought-after cities. Property Reporter
Increased supply has helped ease upward pressure on rents, but it hasn’t yet completely equalised demand and availability.
📈 4. Regional Variations in Rental Growth
While national figures show slowing rent growth, some local markets are behaving differently:
- Rents in certain more affordable cities have grown faster than the national average (e.g., areas like Carlisle and Chester).
- In contrast, some major cities — including parts of London and Leeds — have seen much smaller increases or even slight declines in rental prices. Zoopla
This mixed performance highlights the importance of understanding regional market conditions.
🔐 5. What This Means for Landlords
Slower rent growth and rising supply suggest the market is transitioning from tenant shortages to a more balanced state. For landlords, this means:
- Rents may still rise in 2026, but likely at a modest rate (Zoopla forecasts around 2.5% growth).
- Properties may take longer to let, especially outside high-demand areas.
- Pricing competitively and maintaining properties well may help secure reliable tenants in a gentler market. Zoopla
⚖️6. Why the Market Is Changing
Several structural factors are influencing the rental market:
- Lower net migration, reducing the number of people moving into the UK and seeking rental homes.
- Improved mortgage affordability for first-time buyers, encouraging some renters to buy rather than rent.
- More rental properties on the market, giving tenants more choice. Property Reporter
Understanding these trends can help landlords plan long-term strategies and set realistic expectations.
