The cost of renting is expected to rise by 4% or 5% a year by December, according to property website Zoopla.
By Nexvoro Tech Wire
PUBLISHED SUN, SEP 13, 2026 11:33 PM UTC • 6 MIN READ
Primary Journalistic Dispatch & Direct Reporting
Average rental costs for new tenancies were up 2.6% in July compared with a year earlier, according to property website Zoopla.
That remains lower than the rate of rising prices in general, but the property portal has forecast annual rent rises among privately rented homes will hit 4% or 5% by the end of the year.
It said there were fewer homes available to rent and - with potential first-time buyers put off by higher mortgage rates - competition for rental places in some areas was more intense.
In-Depth Developments & Factual Context
"Our latest report shows how sensitive the rental market is to even modest changes in how many homes are available for rent," said Richard Donnell, executive director at Zoopla.
"Growing the number of homes for rent through increased investment is the most sustainable route to boosting choice for renters and ensuring stability in rent levels over the long run."
The Renters' Rights Act came into force in England at the start of May, and was described as the biggest shake-up of the sector in more than 30 years.
Industry Impact & Strategic Analysis
Separately, the rising cost of renting has calmed recently. It fell to a low of 1.6% in February, Zoopla data shows.
But since then, the number of homes on the market for renters has been squeezed, with 3% fewer being available than a year ago.
In addition, each listing now receives an average of more than five enquiries. That is a long way short of the long queues for properties after the pandemic, but is still the most intense competition for nearly two years.
Forward Outlook & Market Perspective
Rental demand was particularly significant in London, the Zoopla report said.
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It said that rent rises were being seen across the UK, but the situation still differed depending where renters were looking.
"In less expensive areas, renters have more capacity to absorb rent rises before hitting an affordability ceiling, whereas in the most expensive areas, rents are already stretching what renters can pay, capping how much further rents can increase," the report said.
Reporting synthesized and verified under Nexvoro.tech editorial guidelines. Full primary records referenced via BBC Business.
Reporting synthesized under Nexvoro.tech Editorial Standards • Referenced via BBC Business
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