Affordable areas see fastest rent rises as supply stays tight

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Affordable areas see fastest rent rises as supply stays tight

Landlords with homes in cheaper rent markets are seeing some of the sharpest rises in the country, even as rent growth slows across much of the UK.

Zoopla’s latest Rental Market Report says rents in areas where average monthly rents are £750 or less are rising by 5% a year.

That’s more than twice the UK average of 2.1%.

The fastest increases include Carlisle, where rents are up 9.1%, Kilmarnock at 9%, and Halifax at 6.5%.

Those rises are coming from a lower base, with average rents in those markets still around £700 a month and 45% to 50% below the UK average.

Rental gap is closing

Richard Donnell, an executive director at Zoopla, said: “We’re seeing a split in how different regions and cities are responding to changes in the supply and demand for rented homes.

“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.”

He added: “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.”

Where rents fell

Higher-cost centres are seeing weaker growth, and in some cases falls.

Bournemouth rents are down 1.7%, Nottingham is down 1.5%, and Birmingham has recorded a 1.1% fall.

Nationally, annual rent inflation has eased to 2.1%, down from 2.6% last April.

Average earnings are rising by 4%, meaning wage growth has now outpaced rent growth for 18 months.

Fewer homes to rent

However, supply remains well below pre-pandemic levels and Zoopla says every UK region and country has 20% to 30% fewer homes available to rent than before the pandemic.

The average number of enquiries per rented home reached 5.6 per listing in May 2026, the lowest level for six years and down from almost 16 in 2022.

London is the main exception with demand up 6% year on year, while the number of homes available to rent has not changed.

Rent inflation in London has risen to 2.2%, from 1.9% a year earlier, with the average rent now £2,206 a month.

Zoopla expects rent inflation to remain between 2% and 3% over the rest of 2026.

Tenant demand outstrips stock

Propertymark’s chief executive, Nathan Emerson, said: “In many areas where rents have traditionally been lower, demand remains strong and limited housing supply is pushing prices upwards at a faster rate than the national average.

“The underlying issue remains a chronic shortage of rental supply.

“Propertymark’s own member data consistently shows that prospective tenant demand continues to outstrip available stock, and despite some easing in competition, there are still far too few homes available to meet housing need.

“This is particularly evident in lower-cost locations where renters often have fewer alternatives and less flexibility when prices rise.”

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