Economy

Rents rise by less than earnings as demand from tenants drops

Demand for rented properties is falling, with the number of tenant enquiries at its lowest level for six years. 

Zoopla says there were just 5.6 enquiries per rental property listing in May 2026, down from a peak of almost 16 in 2022.

The fall in demand means that average rental prices have increased by less than average earnings over the past 12 months.

While the average income is up 4.1 per cent year-on-year, the average rent on newly let properties has risen by 2.1 per cent. 

Falling demand has not reduced rents, according to Zoopla, because the number of homes available to rent remains 20 to 30 per cent below pre-pandemic levels. 

The property website also said investment in new private rented homes remains low.

Tough task: There were just 5.6 enquiries per rental property listing in May 2026, says Zoopla, down from a peak of almost 16 in 2022

Tenants in cheaper areas more likely to see rent rises

Zoopla found that renters in areas with lower average rents are facing the fastest growth in prices.

In areas with average rents below £750 a month, rents are up by nearly 5 per cent, more than double the national average.

Conversely, the property portal says that in more expensive areas the high cost is limiting how much rents can increase. 

Newly agreed rents in Carlisle are up 9.1 per cent year-on-year to £739, it said, compared to just 2.4 per cent in Manchester where the typical rental lets for £1,186.

In Telford in the West Midlands, average rents are up 6.3 per cent to £909 per month – but in nearby Birmingham they have fallen by 1.1 per cent to £1,035.

Other towns to see rents surge include Kilmarnock in Scotland, where rents are up 9 per cent and Halifax in Yorkshire and the Humber, up 6.5 per cent.

There are a few towns and cities where rents have fallen. 

In Nottingham new rentals are 0.9 per cent lower than they were a year ago, and in Bournemouth they are down 1.7 per cent.

On a regional basis, annual rental growth varies from just 0.4 per cent in the West Midlands to 3.8 per cent in the North East.

Zoopla says there has been an uptick in enquiries for rented homes in London, despite no change in the number of homes for rent. 

This perhaps explains why rents in London have increased to 2.2 per cent, up from 1.9 per cent a year ago.

Where rents have risen the least – or even fallen in the last 12 months
Location z z
Aberdeen 0.80% £731
Torquay 0.80% £973
Slough 0.80% £1,603
Northampton 0.60% £996
Reading 0.60% £1,339
Cambridge 0.40% £1,423
Brighton 0.30% £1,461
Ilford 0.20% £1,772
Swansea 0.00% £847
Medway -0.50% £1,244
Nottingham -0.90% £927
Coventry -1.00% £1,040
Birmingham -1.10% £1,035
Peterborough -1.50% £932
Bournemouth -1.70% £1,235
Source: Zoopla     

Greg Tsuman, managing director of lettings at Martyn Gerrard Estate Agents says the drop off in rental enquiries will come as a surprise given the upheaval caused by the Renters’ Rights Act.

However, despite this, he says there is clearly still a massive shortage of rental properties across the country. 

‘The figures show a 20–30 per cent drop in homes available to rent since before the pandemic, which is a significant decline. This comes as the UK population grew by more than 2 million people over the same period.

‘London continues to see the greatest affordability imbalance and ,the highest rents, because there is no new investment taking place. Rents could, and should, be falling.

‘While the figures show that the ratio of tenants to homes has fallen nationally, we’re seeing the opposite in north London. We’ve seen a 53 per cent increase, with 23 tenants per property in June, up from 15 in April last year.’

Best mortgage rates and how to find them

Mortgage rates have shot up again due to inflation triggered by the conflict with Iran reversing hopes that the Bank of England would cut rates. This means those remortgaging or buying a home face higher costs.

That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord.

This is Money’s partner L&C can help you with its fee-free mortgage service.

> Compare mortgage rates

> Find the right mortgage for you 

To help our readers find the best mortgage, This is Money has partnered with the UK’s leading fee-free broker L&C.

This is Money and L&C’s mortgage calculator can let you compare deals to see which ones suit your home’s value and level of deposit.

You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.

If you’re ready to find your next mortgage, why not use This is Money and L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you.

> Find your best mortgage deal with This is Money and L&C 

Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage. 

  • For more: Elrisala website and for social networking, you can follow us on Facebook
  • Source of information and images “dailymail“

Related Articles

Leave a Reply

Back to top button

Discover more from Elrisala

Subscribe now to keep reading and get access to the full archive.

Continue reading