Slower rent growth and longer let times point to a market moving towards balance
UK rental pressures have eased, with competition for homes at its lowest level in six years, according to Zoopla’s latest Rental Market Report.
Zoopla reported a fall in renter demand of 14% year on year, while the supply of homes available to let increased by 11% over the same period. It said the average number of enquiries per property dropped to 4.8, from 6.5 a year earlier, signalling a shift away from the heightened competition seen in 2022 and 2023.
The report linked softer demand partly to improved mortgage conditions for first-time buyers, alongside lower levels of migration for work and study. Office for National Statistics estimates cited by Zoopla show net migration peaked at 944,000 in the year to March 2023 and slowed to 204,000 in the year to June 2025.
Zoopla said around three-quarters of first-time buyers move from renting into owner-occupation, reducing pressure on the rental sector. It added that more stock has also come from would-be sellers opting to let out properties instead, particularly where sales have proved difficult.
Homes are also taking longer to let. Zoopla put the average time to secure a tenant at 20 days, a week longer than the 13-day peak recorded in 2022. It said this has given renters more choice and greater scope to negotiate.
According to Zoopla, rents on new lets rose 1.9% over the past 12 months.
The slower pace of rental growth has coincided with stronger earnings growth. Average pay has increased faster than new-let rents for 18 months, improving affordability. Outside London, the annual rent for an average home now equates to 33.5% of a single person’s gross annual income, down from a reported high of 35% in 2023.
Regional patterns remain uneven. Zoopla said rental growth is stronger in lower-cost markets in Northern England and Scotland, highlighting Liverpool (4.6%) and Newcastle (4.5%).
By contrast, several cities in the Midlands and the South are seeing weaker growth or falls, including Bristol (0.8%) and Cambridge (0.1%), with Birmingham (-0.7%) and Nottingham (-0.8%) declining. In London, Zoopla said rents rose 1.7%, with the average rent at £2,187.
Zoopla also pointed to sharper swings by region. Wales, it said, moved from 4% growth last year to 2.3%, while the West Midlands shifted from 3.8% to 0.3%. Zoopla said the softer readings reflect weaker demand in those areas and may be temporary as local markets adjust.
“Market conditions for renters are the best they have been for six years,” said Richard Donnell (pictured right), executive director at Zoopla. “The rental market is moving back towards balance as demand cools and more homes become available to rent.
“However, supply remains well below pre-pandemic levels, which means increasing the number of rental homes remains key to improving affordability for the UK renters over the long term.”
London letting agents reported a more mixed picture. “We’re seeing a more mixed picture on the ground in Central and South West London,” said Harry Watts, lettings director at Douglas & Gordon.
“While the market has become more balanced compared with the 2022–23 peak, applicant registrations are still up 18% so far this year versus the same period last year, which points to continued underlying demand for well located, good quality homes.
“At the same time, as we move closer to the Renters’ Rights Act, we’re seeing more tenants being asked to move at points in the year when they would not typically expect it. In many cases, this appears linked to landlords reassessing their position and, in some instances, choosing to sell, which is becoming more prevalent.
“And even where rental growth is cooling, there is a clear affordability ceiling. Over the past couple of years, tenant incomes have struggled to keep pace with pricing, so correctly priced homes let well, while anything ambitious is taking longer and facing sharper negotiation.”
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