Rent growth accelerates as supply tightens

What's happened

Zoopla data show UK rents rising 2.6% in July, with 4–5% higher rents forecast by year-end. Demand is up as higher mortgage costs push would-be buyers into the rental market; supply remains constrained, especially in London.

What's behind the headline?

What this means for readers

The rental market is tightening as supply fails to keep up with demand.
Regions with the tightest markets are London and other high-rent areas.
Expect further rent increases, particularly where supply is most constrained.

Why now

Higher mortgage costs are deterring buyers, pushing more people into rentals.
Landlord investment remains subdued, limiting new rental stock.

What happens next

Rents are likely to rise by another 4–5% by year-end, according to Zoopla’s forecast. This will press renters to seek affordable options or lock in current rates sooner.

How we got here

Rising mortgage costs have kept buyers in the rental market, reducing available for-rent stock. Zoopla reports a three-year slowdown in rent growth ended, with demand rising and supply lagging behind 2025 levels. The Renters’ Rights Act is part of the regulatory backdrop in England.

Our analysis

- BBC Business reports Zoopla data showing 2.6% annual rent rise in July and forecasts of 4–5% by year-end, with tighter supply. - Independent coverage repeats the points, noting demand has climbed as borrowing costs rise and supply has lagged behind 2025 levels. - Richard Donnell of Zoopla emphasizes sensitivity of rents to available stock and the lasting impact of higher mortgage rates.

Go deeper

Will rents keep rising into next year in most regions?
How will the Renters’ Rights Act influence landlord behavior?
What cities offer the best value for renters right now?