Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Rents Rise 5% in UK’s Most Affordable Rental Markets, Zoopla Finds

Rents in the UK’s most affordable rental markets are increasing at a rate of 5% or more, according to analysis by Zoopla. This is more than double the national average rent increase for newly listed homes, which stands at 2.1% year-on-year.

The report highlights that areas where tenants pay less than £750 per month are experiencing the fastest rent rises. Carlisle and Kilmarnock have seen the highest increases, with rents up 9% year-on-year, while Halifax has recorded a 6.5% rise. Despite these increases, average rents in these locations remain around £700, which is 45-50% below the UK average.

In contrast, some cities have seen rents fall. Bournemouth, Nottingham, and Birmingham have each recorded decreases in rents of between 1.1% and 1.7%. The report attributes this to weaker demand and affordability pressures in most UK cities, which are keeping rental growth subdued.

Affordability and Market Dynamics

Nationally, the pace of rent increases has slowed, dropping from 2.6% in April 2025 to 2.1% in April 2026. Average earnings are growing at 4%, and for the past 18 months, earnings have outpaced rental growth, indicating a gradual improvement in rental affordability, particularly in more expensive areas.

The report also notes that in areas where average rents are above £1,250 per month, rent growth is at or below the national average, as high costs limit further increases.

Supply and Demand Trends

Across all UK regions, there are 20-30% fewer homes to rent compared to pre-pandemic levels. This shortage of new investment in the private rented sector is putting upward pressure on rents and limiting options for tenants. However, competition for rental properties is easing, 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 where demand for rented homes has increased, with enquiries up 6% year-on-year.

These trends are relevant for letting agents and inventory clerks monitoring regional rental market shifts and tenant demand.