Average UK rent rises to £1,321
The average rent for new lets in the UK is £1,321 as of June 2026. This is a rise of 2.1% or £30 in the last year.
Average rent June 2026 | Annual rental growth (%) | Annual rental growth (£) | |
|---|---|---|---|
UK | £1,321 | 2.1% | £30 |
UK excluding London | £1,082 | 2.0% | £20 |
The 2.1% 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 June 2026 (PDF, 345kB)
UK rents rise by 2.1% as demand eases
Average UK rents for new lets increased by 2.1% in April 2026, down from 2.6% a year ago. Competition for rented homes is falling, returning towards pre-pandemic levels.
There were an average of 5.6 enquiries per rental home in May 2026, down from a peak of 15.5 in 2022. But competition for homes remains well above 2017-19 levels and explains why rents are still largely rising.
Falling demand has not reduced rents because the number of homes available to rent remains below pre-pandemic levels across every region. New investment in private rented homes remains low.
Affordability drives two-tier rental market
Behind the national figure of rental inflation are two distinct markets.
In places like Birmingham (-1.1%), Nottingham (-0.9%) and Bournemouth (-1.7%) rents are falling. Other areas like Carlisle (9.1%), Kilmarnock (9%) and Halifax (6.5%) are seeing rents rise at a rate of 7-9% per year.
Renters in areas with lower average rents are facing the fastest growth in rents. For example, rents in areas with an average of less than £750 a month are seeing nearly 5% year-on-year increases, more than double the national average
In more expensive areas, the high cost of renting is limiting how much rents can increase. Places with an average rent higher than £1,250 a month are growing at or below the 2.1% UK average.
Renters' Rights Act shifts focus to local growth trends
The variation in rental growth is key for landlords and renters to understand in light of the Renters' Rights Act, which came into force in England on 1 May 2026.
The Act requires landlords and agents to provide tenants with advance notice of proposed rent increases. With rents rising at very different rates across the country, local market growth is an important factor in setting rents and in how negotiations play out in practice.
Our data provides a factual basis for rent reviews between landlords and renters, highlighting the variance in direction and pace of rental growth in local areas.
Earnings growth outpaces rents
On a regional and countrywide basis, annual rental growth varies from just 0.4% in the West Midlands to 3.8% in the North East.
Average earnings are growing at 4%, almost twice as fast as the growth in rents. This offers some affordability relief for renters in full-time work.
There is lower rental growth in large cities, where most rented homes are located. This explains why the national average of 2.1% understates the pace of growth being recorded across more rural, affordable areas.
Higher mortgage rates push rents higher in London
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 has led to an increase in demand for rented homes in London (+6% over the 4 weeks to 31 May 2026). It is the only region to register an increase in demand in this time.
With no change in the number of homes for rent, rental inflation in London has increased to 2.2%, up from 1.9% 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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