New data published by Zoopla shows that rental prices in the UK recorded their lowest growth since July 2021, signalling the end of a years-long surge in rent for UK property.
The property platform said the four-year-long surge in rents for new tenancies has ended due to demand cooling off and affordability constraints increasing.
The average rent for new lets in the UK is £1,287 as of April 2025, with rents rising only 2.8% in the last year, the slowest rate of growth seen in four years.
Over the last three years, rents grew by 21% in the UK while house prices only increased by 4%. Rents now look to be following inflationary rises more closely as the surge in average rent prices abates.
“The 4-year surge in UK rental prices has ended. Over the 12 months to April 2025, average rents for new tenancies rose by 2.8% – less than half the 6.4% growth rate seen a year earlier and the slowest pace since July 2021,” said Zoopla.
“The slowdown is a result of weaker demand and ongoing affordability pressures, rather than an increase in rental supply.”
Demand falls but home ownership remains out of reach
Demand for rented homes is 16% lower than last year, influenced by a reduction in net migration and improved access to mortgage finance for first-time buyers.
Rental supply has increased over the past year and landlords are buying more homes, but those properties are taking longer to rent out as tenants are squeezed.
“While the pace of rent increases has slowed, renters still face strong competition for rented homes, especially those on lower incomes with little hope of being able to buy a home,” Zoopla said.
“Despite improved conditions in the mortgage market, home ownership remains out of reach for a large proportion of households on lower to middle incomes with small deposits.”
The image below shows the average rent price and annual change over the past year across major regions in the UK.
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