Gloomy forecast for tenants as rent rises set to speed up
Zoopla said higher mortgage rates and weaker landlord investment have tightened supply, lifting average UK rents 2.6% in July and pushing more growth ahead.
- 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.
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9 Articles
The Independent
The Independent (US)Property portal giant says it expects rent prices to accelerate by end of 2026
Annual rent increases accelerated to 2.6% in July
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