More ‘affordable’ areas see rents rise two times faster than the national average – lack of supply keeps upward pressure on rents

Rental prices in traditionally affordable places are rising at double the average rate of rental inflation, according to Zoopla’s latest Rental Market Report.

The report reveals that in areas where average rents are £750pcm or less, rents are rising by 5% on average. This is over twice the national average of 2.1%, with the report also finding that demand for rented homes has fallen to its lowest level for 6 years (2020).

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However, there is relief for renters in other parts of the country – with rents nationally rising at 2.1% YoY, down from 2.6% YoY last April. At the same time, average earnings are growing at 4%, marking 18 months that earnings have outpaced rental growth and reflecting a wider gradual improvement in the affordability of renting. With average earnings rising at 4%, this reflects increased rental affordability for many Brits, especially those in more expensive areas.

The areas facing the highest increases in rents is Carlisle (9.1%), Kilmarnock (9.0%) and Halifax (6.5%) postal areas, while the Birmingham (-1.1%), Nottingham (-1.5%) and Bournemouth (-1.7%) postal areas are seeing rents fall as affordability caps growth in higher-cost centres.

Despite the current pace of growth, rents in these faster-rising markets remain well below the national average in absolute terms. In Carlisle, Kilmarnock and Halifax, average rents of around £700 are 45-50% below the UK average.

In most areas where rents are above £1,250pcm, the pace of growth is at or below the national average, as the high cost of renting limits how much further rents can rise. Each UK region has 20-30% fewer homes to rent than before the pandemic, with a lack of new investment placing upward pressure on rents while limiting choice for renters.

Affordability improving, but gains are fragile without more supply

While wider affordability is improving, this is being held back by lower supply compared to pre-pandemic. However, competition for rental properties continues to ease, with an average of 5.6 enquiries per rental listing in May 2026, down from a peak of almost 16 in 2022.

London is the only region bucking the trend of weaker demand for rented homes. The capital is the only area to see an increase in demand, with enquiries 6% higher year on year. Higher mortgage rates have also kept the capital’s would-be first time buyers renting. Additionally, with no change in the number of homes available to rent, rent inflation has risen to 2.2%, from 1.9% a year ago, with the average rent now £2,206 per month. This shows how price pressure in the rental market is also impacting the sales and buying markets.

Zoopla expects rental inflation of 2-3% over the remainder of 2026. But without a meaningful increase in the supply of homes to rent, this improvement to affordability will remain fragile and renters in lower-cost areas, who have the fewest alternatives, will continue to bear the greatest burden.