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Gloomy forecast for tenants as rent rises set to speed up
Zoopla said higher mortgage rates and weak landlord investment are tightening supply, with average monthly rents at £1,340 and annual growth at 2.6% in July.
UK rental prices are projected to rise between 4% and 5% by the end of the year as the rental market tightens after three years of improved supply, Zoopla reported.
Higher mortgage rates are keeping would-be first-time buyers in rented homes for longer, reducing supply just as seasonal demand increases in recent months.
Annual rent increases reached 2.6% in July, accelerating from 1.6% in February 2026, with average monthly rents rising to £1,340, Zoopla stated.
New landlord investment remains "still muted as a result of higher costs and more regulation," while rent rises are capped in expensive areas where affordability is already strained.
Nathan Emerson, chief executive at Propertymark, said "increasing supply must remain a priority" to improve affordability and give tenants greater choice in a stable rental market.