Market situations for renters ‘greatest for six years’

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Your assist makes all of the distinction. Learn extra Competitors for rental houses has fallen to its lowest stage for the month of February in six years, based on a property web site.

Zoopla mentioned the common variety of inquiries per property was 4.8 in February, down from 6.5 final yr, that means fewer renters sometimes competing for every house.

It marks the bottom stage within the month of February since February 2020, when there have been round 4.2 inquiries per rental house.

Zoopla mentioned this was “clear proof” of the rental market turning into extra balanced after a peak in competitors seen in 2022 and 2023, with improved mortgage situations having helped extra renters to purchase their first house.

UK rents for brand spanking new lets elevated by 1.9% over the yr to January, reaching £1,319 on common throughout the UK the web site mentioned.

The report mentioned: “Rental development stays stronger in additional inexpensive northern markets the place rents are decrease. Cities corresponding to Liverpool, Newcastle and Glasgow are nonetheless recording stronger will increase of three% to 4.6%.”

Zoopla mentioned it anticipated rents to extend by round 2% to three% on common throughout the UK throughout 2026.

Its rental market index relies on asking rents and adjusted to replicate achieved rents.

Richard Donnell, govt director at Zoopla, mentioned: “Market situations for renters are one of the best they've been for six years.

“The rental market is shifting again in direction of stability as demand cools and extra houses develop into accessible to hire.

“Renters are dealing with much less competitors for houses and slower hire will increase than in recent times. Localised modifications in demand and provide are leading to rents falling in some cities however this will probably be solely a short-lived development.

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“Nevertheless, provide stays properly under pre-pandemic ranges, which suggests rising the variety of rental houses stays key to bettering affordability for the UK renters over the long-term.”

Tom Invoice, head of UK residential analysis at Knight Frank, mentioned: “Extra stability has returned throughout the UK however within the capital, the place renting is twice as widespread, there may be nonetheless a notable lack of provide in lots of areas that's pushing rents increased.”

In the meantime, calculations from property agency Savills indicated that the worth of the UK’s personal rented sector fell by £48 billion in 2025, whereas the worth of owner-occupied housing inventory elevated by £185 billion.

The worth of the personal rented sector has shrunk for 3 years in a row, based on Savills’ calculations, with the worth of houses falling by a complete of £79 billion since 2022, as elevated home costs have did not offset the lack of inventory.

Lucian Prepare dinner, head of residential analysis at Savills, mentioned: “Over the previous 25 years, we’ve grown accustomed to a narrative of the personal rented sector increasing on the expense of individuals’s means to get onto the housing ladder.

“However whereas deep-seated housing challenges stay, lighter regulation within the mortgage market and tighter oversight of the personal rented sector are progressively starting to shift that narrative.

“Adjustments in tenancy laws, increased working prices and elevated mortgage charges have prompted many personal landlords to reassess their portfolios.

“Bigger landlords, higher outfitted to soak up added prices and necessities, have taken on a few of this inventory, contributing to a extra professionalised PRS (personal rented sector). However others have been offered to owner-occupiers, lowering the sector’s general measurement.”

Nathan Emerson, chief govt of property professionals’ physique Propertymark, mentioned: “We presently have a rental panorama the place demand for properties continues to outstrip accessible inventory.

“When wanting on the newest information accessible, Propertymark members report a close to 7% enhance within the variety of landlords who've chosen to promote their properties year-on-year.”

Listed below are common month-to-month rents in areas, nations and a choice of main cities in January and the annual change, based on Zoopla:

East Midlands, £925, 1.4percentEast of England, £1,251, 1.9percentLondon, £2,187, 1.7percentNorth East, £770, 4.2percentNorth West, £958, 3.0percentNorthern Eire, £831, 8.4percentScotland, £878, 1.8percentSouth East, £1,397, 1.9percentSouth West, £1,147, 2.6percentWales, £941, 2.3percentWest Midlands, £972, 0.3percentYorkshire and the Humber, £866, 1.5percentBelfast, £847, 7.6percentBirmingham, £998, minus 0.7percentBristol, £1,431, 0.8percentCardiff, £1,193, 2.6percentEdinburgh, £1,323, 2.0percentGlasgow, £1,030, 3.7percentLeeds, £1,024, 0.8percentLiverpool, £915, 4.6percentManchester, £1,167, 1.6percentNottingham, £992, minus 0.8percentSheffield, £861, 0.9percentSouthampton, £1,194, 2.1%