The UK rental market is showing fresh signs of pressure as the number of homes available to rent starts to fall again. New data from Zoopla shows that the average UK rent has reached £1,343 a month, while annual rental growth has risen to 2.6%.
The change comes after a period when rental supply had been improving. Over the past year, the number of homes available to rent has fallen by 3%, while the flow of new properties entering the rental market is down 6%. At the same time, competition between renters has increased, with an average of 5.3 enquiries being made for each rental listing.
London is experiencing a particularly tight market. Rental growth in the capital has reached 2.9%, while inner London is facing an even larger gap between demand and available homes.
The latest figures suggest that rental affordability may come under renewed pressure during the rest of 2026, particularly if the supply of rental homes continues to decline.
Key Takeaways
- The average UK rent has reached £1,343 a month.
- Annual UK rental growth stands at 2.6%.
- Average rent outside London is £1,097 a month.
- The number of homes available to rent is 3% lower than a year ago.
- New rental listings are 6% lower than a year ago.
- There are now around 5.3 enquiries per rental property.
- London rental growth has reached 2.9%.
- Inner London has 13% fewer rental homes available than a year ago.
- Wales has seen rental supply increase by 7%.
- Zoopla expects rental growth to reach 4% to 5% by the end of 2026 if current trends continue.
Average UK Rent Reaches £1,343
The average rent for a new let in the UK is now £1,343 per month, according to Zoopla’s September 2026 Rental Market Report. This represents an annual increase of 2.6%, or approximately £30 a month.
The average outside London is lower, at £1,097 per month, with annual rental growth of 2.5%.
| Market | Average Rent | Annual Growth | Annual Increase |
|---|---|---|---|
| UK | £1,343 | 2.6% | £30 |
| UK excluding London | £1,097 | 2.5% | £30 |
These national figures do not tell the whole story. Rental conditions vary considerably between different parts of the country. Zoopla reports that rents are increasing faster than the national average in around 75% of local areas.
For renters looking for a new property, this means the actual increase they face can be considerably different from the headline UK figure.
Rental Supply Is Starting to Tighten Again
One of the biggest changes in the UK rental market is the reduction in available properties.
The number of homes available to rent is now 3% lower than a year ago. This follows three years during which rental supply had generally been improving.
The number of new homes coming onto the rental market has also fallen. Zoopla reports that the flow of new rental properties is 6% lower than it was a year earlier.
For renters, fewer listings can mean more competition, fewer choices and less time to decide when a suitable property becomes available.
The wider shortage is also significant when compared with the period before the pandemic. Zoopla says there are around 25% fewer rental homes on the market than before the pandemic.
This helps explain why even relatively modest changes in supply can have a noticeable effect on rents.
Competition Between Renters Is Increasing
The reduction in supply is already showing up in rental demand.
There are now an average of 5.3 enquiries per rental listing, according to the latest Zoopla figures. That is 6% higher than a year earlier and represents the highest level in almost two years.
This does not mean every property receives the same level of interest. Demand varies according to location, price, property type and local employment conditions.
However, the national trend indicates that renters are once again competing for a smaller pool of available homes.
For tenants, this can make preparation more important. Having documents ready, understanding affordability and responding quickly to suitable listings can help reduce delays when applying for a property.
Why Are Fewer Rental Homes Coming Onto the Market?
Several factors are affecting the supply of homes available to renters.
Landlords are facing higher costs, while changes to the regulatory environment are also influencing decisions within the private rented sector. At the same time, mortgage costs remain an important consideration for property owners.
When the costs associated with owning and renting out a property increase, some landlords may reassess whether to keep a property within the private rented sector.
Lower investment in new rental housing can also limit the number of additional properties entering the market.
This creates an important supply-and-demand relationship. If the number of available properties falls while the number of people looking to rent remains high, competition can increase and rental prices can come under upward pressure.
Regional Rental Trends Are Different Across the UK
The UK rental market is not moving in exactly the same direction everywhere.
London and Yorkshire & Humber have recorded some of the largest increases in rental growth over the past year. At the same time, available rental properties have fallen by 6% in London and 12% in Yorkshire & Humber.
Wales provides a different example. The number of homes available to rent has increased by 7%, giving renters more choice and helping to moderate rental growth.
This regional variation is important because the national average can hide significant differences between local markets.
A renter in an area where supply is increasing may experience different conditions from someone searching in a location where available homes are becoming harder to find.
Rental Supply and Growth by Region
| Region | Change in Rental Supply | Market Trend |
|---|---|---|
| London | -6% | Stronger rental pressure |
| Yorkshire & Humber | -12% | Supply has tightened |
| Wales | +7% | More rental choice |
These figures show why renters and landlords should pay attention to local market conditions rather than relying only on the UK-wide average.
London Rental Market Faces Greater Pressure
London remains one of the areas experiencing the strongest rental pressure.
Rental growth in the capital has increased to 2.9%, compared with 1.7% a year earlier. The number of homes available to rent has also fallen by 6% compared with the previous year.
The situation is even tighter in inner London.
Rental demand in inner London is higher than it was a year ago, while the number of available rental properties is 13% lower. Zoopla says this combination has pushed rental growth in inner London to around 3% to 4%.
The situation is also connected to the cost of buying a home.
Higher Mortgage Rates Are Keeping Some Buyers Renting
Mortgage affordability can have a direct effect on rental demand.
When buying a home becomes more expensive, some potential first-time buyers may postpone their purchase and remain tenants for longer.
This effect is particularly noticeable in London, where property prices and typical mortgage requirements are higher.
According to Zoopla, the average London buyer would need an additional £35,500 deposit to maintain the same mortgage repayment following the rise in mortgage rates discussed in its report. The equivalent figure for the average UK buyer is £18,200.
This does not mean every prospective buyer will delay purchasing. Individual circumstances vary, including income, deposit size, mortgage terms and property prices.
However, when buying becomes harder for some households, rental demand can remain stronger for longer.
What Does the Rental Market Mean for Tenants?
For renters, the latest market conditions point to a continued need to budget carefully.
An average rent of £1,343 does not mean every household will pay that amount. Rents vary significantly by region, property size and location.
However, the combination of fewer available homes and more enquiries per listing suggests that tenants in competitive markets may face more pressure when searching for a new home.
Renters can reduce some of the practical difficulties by preparing documents in advance, checking their budget carefully and monitoring new listings regularly.
It is also useful to compare several properties rather than assuming that the first available home represents the wider local market.
What Does It Mean for Landlords?
Landlords are operating in a market where tenant demand remains important, but the cost of providing rental housing is also a major consideration.
Lower rental supply can support rental values, particularly in locations where demand remains strong.
At the same time, landlords need to consider mortgage costs, maintenance, taxation, compliance requirements and other expenses when assessing rental income.
The current figures therefore do not simply suggest that landlords can increase rents without limit. Local affordability and competition from other properties remain important factors.
Could UK Rents Rise Faster Later in 2026?
The direction of rental growth is one of the key questions for the remainder of the year.
Zoopla reports that while annual rental growth is currently 2.6%, rental growth over the previous six months was running at an annualised rate of around 4%. Based on current trends, Zoopla expects UK rental growth to reach 4% to 5% by the end of 2026.
This is a forecast rather than a guaranteed outcome.
Rental growth will depend on several factors, including the number of properties entering the market, tenant demand, mortgage costs, household incomes and wider economic conditions.
If rental supply continues to fall while demand remains strong, upward pressure on rents could continue.
The Outlook for the UK Rental Market
The rental market is entering the final part of 2026 with a different balance between supply and demand than earlier in the year.
For several years, improving supply helped ease some of the pressure on renters. That trend has now started to reverse, with fewer homes available and fewer new properties entering the market.
The result is a market where competition is increasing again.
Zoopla’s wider outlook suggests rental inflation could remain around 2% to 3% for the remainder of 2026, while its current-trend projection points to growth reaching 4% to 5% by December. These figures reflect different ways of looking at the market and should be treated as forecasts rather than fixed outcomes.
The long-term supply of rental housing will remain an important factor.
If more homes are added to the private rented sector, renters could have greater choice and landlords may face less pressure to compete for tenants. If supply remains constrained, rental affordability could remain a concern in areas where demand is strong.
What Could Happen Next?
Three factors will be particularly important to watch during the rest of 2026:
1. Rental supply
The number of homes coming onto the market will be critical. A recovery in new listings could give renters more choice and reduce competition.
2. Mortgage costs
Mortgage rates can influence both homeowners and potential first-time buyers. If purchasing remains difficult, some households may continue renting for longer.
3. Household affordability
Rental growth cannot be considered separately from wages and household finances. If rents rise faster than incomes, affordability pressure can increase even when overall rental growth appears moderate.
Final Thoughts
The UK rental market in September 2026 is showing renewed signs of pressure.
Average rent has reached £1,343, annual rental growth is 2.6%, and the supply of available rental homes is 3% lower than a year ago. At the same time, the number of enquiries per rental property has risen to 5.3, suggesting that competition is increasing again.
London is experiencing an even tighter market, while regional differences show that the rental experience can vary considerably across the country.
The biggest issue to watch is the balance between supply and demand. If fewer rental homes continue to come onto the market while demand remains high, rents could face further upward pressure.
For now, the September 2026 data points to a rental market that is becoming tighter again, with the next few months likely to show whether the recent rise in rental growth becomes a longer-term trend.
Comments are closed.