UK rents rise 2.6% in the year to July as homes available to rent fall 3%, Zoopla finds

Average rents for new lets rose 2.6% in the year to July, up from a low of 1.6% in February, taking the UK average to £1,340 a month, according to Zoopla's Rental Market Report published on 14 September. The number of homes available to rent began falling in May and is now 3% lower than a year ago, while higher mortgage rates are keeping would-be first-time buyers renting for longer, pushing enquiries up to 5.3 per listing, the highest in 22 months. For buyers weighing renting against buying, Zoopla expects rent rises to reach 4% to 5% by the end of 2026, and for sellers who are landlords, firmer rents and thinner supply change the maths on whether to sell now or hold. This is a tightening rather than a return to the post-pandemic squeeze: competition is still well below its peak, and the forecast rise would roughly match earnings growth.