Average UK rents for new lets increased by 2.1% in April, down from 2.6% in the previous year, as competition for rented homes is falling towards pre-COVID levels, Zoopla has revealed.

The property search research firm’s latest Rental Market Report stated that the national figure for rent growth "masks two very different rental markets", as renters in areas with lower average rents are facing the fastest increase in rents, while the more expensive areas are limited in how much rents can increase.

Zoopla found that in areas where average rents are below £750 a month, rents have increased by nearly 5% year-on-year, which is more than double the national average, while areas with average rents above £1,250 a month are growing at or below the 2.1% UK average.

London is the only region with rising rental demand (6%), which is driven by higher mortgage rates keeping renters in the market.

Furthermore, supply remains 20% to 30% below pre-pandemic levels in every region, supporting rental inflation.

Executive director at Zoopla, Richard Donnell, said that the new data shows “a split in how different regions and cities are responding” to supply and demand changes for rented homes".

He added: "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 UKs 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.

"It’s positive that earnings continue to grow faster than rents at a national level but the experience of renters in local areas varies widely and is a challenge for lower income renters."

In its outlook, Zoopla expects rental inflation of between 2% and 3% over the remainder of 2026, marking the third consecutive year in which earnings have outpaced rents, continuing a gradual improvement in affordability.

Rents will continue to increase at a faster pace in more affordable markets over 2026, as higher mortgage rates continue to deter first-time buyers in more expensive cities.

Zoopla added that the best-term solution to improving rental affordability is increasing the stock of homes for rent.

Property expert and founder at Lettings Advice Service, Julie Ford, concluded: "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 UKs 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.

"It’s positive that earnings continue to grow faster than rents at a national level but the experience of renters in local areas varies widely and is a challenge for lower income renters."

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