Soaring rents across the º£½ÇÊÓƵ have shifted to a more measured rise as housing supply increases and tenant demand diminishes, fresh data shows.
Average rents have climbed 2.4 per cent compared to a year earlier, marking the lowest annual growth in four years and less than half the rate recorded 12 months previously, Zoopla has revealed, as reported by .
Richard Donnell, executive director at Zoopla, noted that conditions are "starting to normalise", explaining that reduced migration and improved mortgage accessibility for first-time buyers has "eas[ed] the scale of the competition for rented homes."
"There is also more choice for renters with more homes for rent as landlords start to buy homes once again and some owners who can't find a buyer listing their homes for rent," Donnell said.
However, rental demand continues to exceed pre-pandemic levels owing to the unaffordability of homeownership, which is confining people to private renting across numerous regions.
Rental expansion is projected to reach three per cent throughout 2025.
Peter Maskell, managing director of Brock Taylor, commented: "For landlords, success now hinges on being realistic with pricing and ensuring properties are both well-presented and well-located, as these are the homes that continue to attract strong demand even as the market steadies."
London market still yet to ease
London rents climbed by approximately 40 per cent between 2021 and 2024 as enormous demand following a succession of national lockdowns was exacerbated by rising interest rates due to the Russian invasion of Ukraine. "While the situation is improving, the London market remains tighter than in other parts of the º£½ÇÊÓƵ," Zoopla said.
In August, government data showed that the local authorities in the United Kingdom with the least "affordable" rents were all in London.
The number of rental properties in the capital has risen only marginally compared to other regions, as landlords grapple with steep deposits and meagre yields.
Indeed, the capital's most exclusive boroughs rank amongst the º£½ÇÊÓƵ's poorest investment destinations for 2025 as returns continue to diminish.
London holds the highest proportion of landlords still seeking to offload properties, representing 31 per cent of all homes on the market.
Property experts have warned that potential additional levies on landlords' rental earnings, alongside the forthcoming tenants' rights legislation, will prompt even more property owners to exit the capital's market.
