Rent rises set to speed up in gloomy forecast for tenants
Zoopla, the UK property portal, predicts that annual rent increases for privately rented homes will accelerate to between 4% and 5% by December, up from a 2.6% rise in new tenancies recorded in July compared with the previous year. The forecast reflects a tightening rental market, with 3% fewer homes available for rent than a year earlier and each listing now attracting more than five enquiries on average. Competition is especially fierce in London, while the overall trend shows rising pressure on tenants across the country.
The surge in rent growth is linked to a combination of limited supply and broader economic factors. Fewer homes are entering the market as landlords curb investment due to higher costs and increased regulation, while prospective first‑time buyers are discouraged by elevated mortgage rates, intensifying demand for rental properties. Zoopla’s executive director Richard Donnell highlighted the market’s sensitivity to modest changes in housing stock, noting that expanding the rental supply through greater investment is the most sustainable way to stabilise rents. The recent Renters’ Rights Act, which came into force in England in May and represents the most significant sector reform in three decades, has not yet curbed the upward pressure on rents.
Industry voices echo the call for more rental housing. Nathan Emerson, chief executive of Propertymark, stressed that a healthy private rented sector depends on conditions that encourage responsible landlords to invest long‑term, emphasizing that boosting supply is essential to improve affordability and tenant choice. While the projected 4%‑5% rent rise roughly aligns with the average annual increase in workers’ earnings, the disparity between cheaper regions—where renters can absorb higher costs—and expensive locales—where affordability ceilings are already being tested—suggests that without a significant expansion of quality rental stock, many tenants will face mounting financial strain.
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