It has been shown that in areas where average rents are £750 or less, the cost rises by 5% on average. This is more than double the national average of 2.1%.
But Zoopla’s latest rental market report also showed that demand for rental homes has fallen to its lowest level in six years.
Which areas are the most expensive?
Carlisle, according to Zoopla, is a place where rents are rising faster than the lowest base. Over the past year, it has risen by 9.1%.
Next is Kilmarnock where average rents are up 9% and Halifax where the cost of rent is 6.5% higher than this time last year.
Average rents in these places are around £700, 45% to 50% lower than the UK average, Zoopla said.
Are there areas where rents are low?
The good news is that there is relief for renters in other parts of the country. Nationally, rents are up 2.1% but that’s down from 2.6% at this time last year, Zoopla said.
Average incomes are growing by 4%, meaning that over the past 18 months, profits have outpaced rent growth.
There are also areas where rents have fallen in the past year, according to Zoopla. These include Bournemouth where the typical rent fell by 1.7%, Nottingham where rental prices fell by 1.5% on average, and Birmingham where costs fell by 1.1%.
These areas have seen weak demand affordability pressures resulting in lower rental growth.
In fact, in most areas where rents are above £1,250, the pace of growth is at or below the national average, as the rising cost of rent limits how much additional rents can rise.
Every region in the UK has 20% to 30% fewer homes for rent than before the pandemic, with a lack of new investment putting upward pressure on rents while limiting the options available to tenants.
Cost of renting in London
For anyone looking to rent in the capital, demand is high – in fact, Zoopla said inquiries have increased by 6%.
She said high mortgage rates kept aspiring first-time buyers in London in the rental market.
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 average rent now £2,206 a month, Zubla explained. This shows how price pressure in the rental market also affects the buying and selling markets.
Richard Donnell, CEO at Zoopla, said: “Our latest report shows how quickly the gap in rents between affordable areas and major cities where rents are higher is closing.
“Rent inflation is more subdued in most major UK cities due to already stretched affordability levels for renters.
“While rental demand is at a six-year low, low levels of new investment in private rented housing means homes to rent remain scarce, resulting in continued upward pressure on rents.”
2026 rental forecasts and advice for renters and landlords
For the rest of 2026, Zoopla expects rent inflation to range from 2% to 3%. But without a significant increase in the supply of homes for rent, the report said this improvement in affordability “will remain fragile” and renters in low-cost areas, who have the fewest alternatives, will continue to bear the brunt.
Julie Ford, property expert and founder of Lettings Advice Service, offered advice to tenants and landlords. “Act quickly but stay realistic,” she said. “Good properties move quickly, but tenants should still take time to understand the total monthly costs, including utilities and council tax.
“It’s also important to have your paperwork ready early. Preparing references, ID and proof of income can help you move quickly in a competitive market and have a deposit ready to transfer.
“For landlords, regularly reviewing your property is important. Keeping in line with local market trends helps ensure the property is let quickly.
“It is also important to present the property well to attract higher quality tenants. Fresh paint, clean spaces and small repairs can significantly reduce vacancy periods.”
