Good news for UK renters as demand falls to 6-year low

Rental growth in the UK has slowed considerably since last year, with demand for rented homes down by 20%.

This is according to the latest data from online property platform Zoopla, which said this decline has seen rental demand drop to a sex-year low as supply improves relative to the number of people seeking to rent.

Zoopla said this drop in demand is largely due to declining net migration and improved affordability for first-time buyers, meaning more people are able to buy homes and exit the rental market.

The number of homes for rent is 15% higher than it was a year ago, and the average real estate agency now has 14 homes available for rent, up from a low of 8 in 2022.

Data also showed that the time taken for a property to rent has also been steadily increasing and is 18% higher than a year ago.

These factors will make it more difficult to increase rents and lead to lower levels of rental price growth next year, Zoopla said.

Rental growth is not consistent across the country, as it remains relatively strong in the North east and North West, where affordability is better and tenants are better able to afford increases in their rent.

Rental growth is weakest in London, where affordability is already strained and tenants have less capacity to meet increases in their rent.

All together, these factors provide some relief to renters in the UK who can expect slower rent growth, more choice, and healthier competition.

“The rental market has made a big stride back towards normality over 2025 after a prolonged period of sky-high demand and a lack of homes for rent,” said Zoopla executive director Richard Donnell.

“This is welcome relief for renters who can expect to see a greater choice of homes, slower rent increases and a less competitive market.”

“However, the high costs of buying a home remain a barrier to many renters, which will support demand for renting over 2026,” he said.

“While there are signs that landlords are buying homes again, we do not expect a big increase in supply, meaning rents are set to increase by 2.5 per cent over 2026.”

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