Demand for rental properties in the UK has fallen to its lowest level in six years, according to Zoopla. This shift is driven by an increase in available rental homes and a slowdown in rent growth, signalling a more balanced market that landlords should carefully monitor.

Rental demand declines as supply improves

Zoopla reports a 20% drop in tenant demand over the past year, while the supply of rental homes has increased by 15%. This easing of pressure follows a prolonged period of high demand and limited availability since the pandemic. Average monthly rents have risen modestly to £1,320, just £30 more than the previous year, with rental growth slowing to 2.2% compared to 3.3% a year earlier.

For landlords, this means the market is becoming less competitive, offering tenants more choice and slowing the pace of rent increases. However, the rental sector remains important as many potential buyers still face barriers to homeownership due to high purchase costs.

Market normalisation and future outlook

Richard Donnell, executive director at Zoopla, highlights that the rental market is returning to a more normal state after years of intense demand and limited stock. He notes that while some landlords are re-entering the market, a significant increase in supply is unlikely. As a result, rents are expected to rise by around 2.5% during 2026.

This forecast suggests that landlords should prepare for modest rent increases rather than the rapid growth seen in previous years. It also emphasises the ongoing importance of maintaining rental properties to attract tenants in a market with more options.

Factors influencing rental market changes

The reduction in rental demand is partly due to a sharp fall in net migration, with provisional Office for National Statistics figures showing a 78% decline between June 2023 and June 2025. Additionally, improved mortgage affordability has enabled more renters to become first-time buyers, increasing home purchases by around 20% this year. Many of these buyers were previously renting, which has helped release properties back into the rental market.

Estate agencies have seen the average number of rental homes per branch rise to 14, up from eight in 2022, although this remains below the pre-pandemic average of 17. This increase in supply contributes to longer letting times and less pressure on rents.

Letting times lengthen across the UK

The average time a property remains on the market before securing a tenant has increased to 17 days, the longest since 2019. This represents an 18% increase compared to last year and a 42% increase compared to the height of pandemic demand. Letting times have extended in every region, from 14 days in Scotland to 19 days in the West Midlands.

Longer letting periods reduce landlords’ ability to push rents higher, contributing to the more modest rental growth expected in the coming year. Landlords should consider this when setting rent levels and marketing properties to minimise void periods.

Regional variations in rent growth

Rent increases vary across the UK, with the North East seeing the fastest growth at 4.5%, followed by the North West at 3.2%. London continues to experience subdued growth of just 1.6%, while the West Midlands and Scotland both record increases of 1.7%.

Some local markets have seen rents decline, including Birmingham, where new let rents have fallen by 1.5%, and Dundee, down by 1%. Conversely, more affordable areas such as Carlisle, Chester, and Motherwell have experienced sharper rises of 8.1%, 7.4%, and 7% respectively.

Landlords should be aware of these regional differences when considering rent reviews or investment opportunities.

Implications for landlords and agents

The current market conditions suggest landlords need to adopt a strategic approach to managing their rental portfolios. With slower rent growth and longer letting times, maintaining property standards and competitive pricing will be key to attracting and retaining tenants.

Agents should support landlords by providing accurate market data and advising on realistic rent expectations. Understanding local market trends and tenant demand will help optimise occupancy rates and rental income.

Upcoming support for landlords

The Landlord Association (TLA) is launching a new Trusted Partners Hub in the first quarter of 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Service providers in legal, trades, insurance, financial, mortgage, tenant screening, and related sectors are invited to register their interest here.