Average UK rent rises to £1,343
The average rent for new lets in the UK is £1,343 as of September 2026. This is a rise of 2.6% or £30 in the last year.
Average rent September 2026 | Annual rental growth (%) | Annual rental growth (£) | |
|---|---|---|---|
UK | £1,343 | 2.6% | £30 |
UK excluding London | £1,097 | 2.5% | £30 |
The 2.6% UK rental inflation rate doesn't reflect what most people are experiencing when moving. In reality, rents are rising faster than the national average in 75% of local areas.
This spike is being driven by shortage in available rental housing, with 25% fewer rental homes on the market now than before the pandemic. The lack of available properties is what keeps pushing prices upward.
Download the Zoopla UK Rental Market Report September 2026 (PDF, 736kB)
Rent growth is picking up as rental supply falls
Average UK rents for new lets increased by 2.6% in the year to July 2026, up from a low point of 1.6% in February. The average UK rent now stands at £1,343 a month.
The number of homes available to rent has started to fall after steadily improving over the last three years. There are now 3% fewer homes for rent than a year ago, reducing choice for renters and putting upward pressure on rents.
New investment in rental homes remains low as landlords face higher costs and greater regulation. At the same time, higher mortgage rates are making it harder for first-time buyers to purchase a home, keeping more people renting for longer.
The flow of homes coming onto the rental market is 6% lower than this time last year.
This combination of rising demand and falling supply means competition for rented homes is increasing once again. There are now an average of 5.3 enquiries per rental listing, 6% higher than a year ago and the highest level for almost two years.
Rent growth is rising fastest where supply is falling
Rental market conditions vary widely across the country. Our data shows a clear link between changes in the number of homes available to rent and the pace of rental growth.
London and Yorkshire & Humber have seen the biggest increase in rental growth over the last year. The number of homes available to rent is 6% lower than a year ago in London and 12% lower in Yorkshire & Humber.
In contrast, Wales has seen a 7% increase in homes for rent, giving renters more choice and slowing the pace of rental growth.
There is interest in how the new Renters' Rights Act in England is affecting the rental market. Scotland has operated under a similar system for some years and is seeing the same pattern of fewer homes for rent and higher rental growth.
This suggests market forces are shaping rental trends more than new regulation.
Higher rates add pressure to London's rental market
While the story across Britain is largely one of lower supply pushing rents higher, London is seeing both a decline in homes for rent and a clear increase in demand.
Rental growth in London has increased to 2.9%, up from 1.7% a year ago.
Higher mortgage rates have hit London home buyers harder than those elsewhere because of higher house prices and larger mortgages. The average London buyer now needs to find an extra £35,500 for their deposit to keep mortgage repayments unchanged following the rise in mortgage rates this year.
This is almost twice the £18,200 needed by the average UK buyer.
Higher mortgage rates are keeping more would-be first-time buyers renting for longer and adding to demand for rented homes.
The impact is greatest across inner London, where rental demand is higher than a year ago while the number of homes available to rent is 13% lower.
This combination is pushing rental growth across inner London to 3% to 4%.
Rental growth set to rise further to 4% to 5% by December
While UK rents are 2.6% higher than a year ago, rental growth over the last six months is running at an annualised rate of around 4%.
This faster rate of growth is being seen across much of the country.
On current trends, we expect UK rental growth to reach between 4% and 5% by the end of 2026. This would bring rental growth more closely into line with average earnings growth, after three years in which earnings have risen faster than rents.
The rental market remains sensitive to relatively small changes in the number of homes available to rent.
Encouraging new investment to grow the number of homes in the private rented sector is the best route to boosting choice and keeping rental growth in check over the longer term.
Higher mortgage rates add pressure to London's rental market
The ease of buying a home has a direct impact on the rental market.
Higher mortgage rates have had the greatest impact on first-time buyers in London, where deposits and required income levels are highest.
This is keeping more would-be first-time buyers renting for longer, adding to demand for rented homes. At the same time, the number of homes available to rent in London is 6% lower than a year ago.
The squeeze is greatest across inner London, where rental demand is higher than a year ago while the number of homes available to rent is 13% lower.
This combination of rising demand and falling supply has pushed rental inflation in London to 2.9%, up from 1.7% a year ago.
Outlook for the UK rental market
We expect rental inflation of 2% to 3% over the remainder of 2026. This would mark the third consecutive year in which earnings have outpaced rents, continuing a gradual improvement in affordability that began in 2024.
Rents will continue to increase at a faster pace in more affordable markets over 2026. Higher mortgage rates will continue to deter first-time buyers in more expensive cities, supporting rental demand and rents.
Growing the stock of homes for rent is the best long-term solution to improving rental affordability. Every region has fewer homes available to rent than before the pandemic and this structural shortage will keep rents rising faster than they otherwise would.
About the Zoopla Rental Market Report
Our Rental Market Index is a repeat transaction index, based on asking rents and adjusted to reflect achieved rents. The index is designed to accurately track the change in rental pricing for UK housing.
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