Key points:
- Average rent for new tenancies in the UK: £1,321 (June 2026)
- Annual rental growth: 2.1% — the slowest rate recorded in several years
- Demand easing and supply improving, pointing to a more balanced market ahead
UK Rental Growth Slows for Third Consecutive Period
The average rent for new tenancies across the UK now stands at £1,321 per month, according to the Zoopla June 2026 Rental Market Report. The national annual rental growth rate has fallen to 2.1%, continuing a deceleration that began in 2025 and marks a significant shift from the double-digit increases seen in the post-pandemic period.
| Metric | Value | Source |
|---|---|---|
| Average rent (new lets) | £1,321 | Zoopla June 2026 |
| Annual rental growth | 2.1% | Zoopla June 2026 |
| Previous period comparison | Slower than recent years | Multiple sources |
The December 2025 Zoopla report had already recorded an average new-let rent of £1,320 with annual growth of 2.2%, described at the time as the slowest rate in four years. By Q1 2026, growth had edged further down to approximately 1.9%. The June 2026 figure of 2.1% reflects a market that is settling into a lower-growth phase rather than reversing sharply — rents nationally are still rising, but the pace has changed materially.
What Is Driving the Slowdown in UK Rents
The cooling trend is being shaped by two converging forces. Tenant demand, while still present, has eased considerably from the intensity seen between 2022 and 2024. At the same time, more rental properties are returning to the market, giving tenants more choice than they have had in several years.
The scale of the demand shift is visible in one concrete figure from the Zoopla report: the average number of enquiries per rental listing peaked at 15.5 in 2022 and had fallen to 5.6 by May 2026. That level remains above the pre-pandemic baseline of 2017–19, which means the market has not returned to the conditions of that earlier period — but competition among tenants is considerably lower than at the peak. On the supply side, Zoopla’s December 2025 data noted available rental stock up approximately 15% year-on-year, a trend that appears to have continued into 2026.
For tenants, the practical implication is that the hyper-competitive conditions of recent years are giving way to a more balanced environment. Whether that translates into negotiating room depends significantly on location.
A Two-Tier UK Rental Market: City Divergence Worth Noting
Not all areas are experiencing the same conditions. Zoopla’s June 2026 report describes a growing divide between different types of locations, and this is an important detail for anyone using national averages as a planning benchmark.
In some higher-cost urban centres — including cities such as Birmingham, Nottingham, and Bournemouth — rents may be seeing modest easing. These local trends are implied by Zoopla’s characterisation of a “two-tier” market rather than stated as confirmed city-level statistics, and readers should treat them as directional indicators rather than precise figures.
At the other end of the spectrum, more affordable locations such as Carlisle and Kilmarnock appear to be recording annual rental growth in the region of 7–9%, based on market analysis in the Zoopla report. This figure is inferred from the report’s narrative rather than stated as a direct measurement, but it is consistent with a pattern where lower-cost areas continue to attract tenant demand and see above-average price increases.
The £1,321 national average is therefore a midpoint across a wide range of local conditions, not a figure that applies uniformly across the country.
What the Cooling UK Rental Market Means for Tenants, Landlords, and Investors
For tenants: The national average of £1,321 provides a useful budgeting benchmark, but local market conditions vary considerably. The easing of demand and improving supply may mean more negotiating room than in previous years, particularly in cities where slight rent reductions are being observed.
For landlords and property investors: The era of double-digit rental growth appears to have passed. A 2.1% national increase sits closer to long-term historical norms. Portfolio and pricing strategies may need to reflect the reality that demand pressure is no longer uniformly strong across higher-cost urban areas.
For policy followers: A cooling rental market may reduce the urgency of government intervention in the private rental sector in the near term, though affordability remains a live issue given the cumulative level of rent increases recorded over the past four years.
Zagdim Analysis
The shift from rapid rental growth to low-single-digit increases is significant, but it should be read carefully. Cooling growth is not the same as falling rents — the national figure is still positive, and in many affordable areas, rents are rising well above the national average. For anyone making a rental budget or investment decision, the more useful exercise is to look at the specific city or area in question rather than relying on the national headline. The two-tier picture Zoopla describes suggests that conditions in Carlisle and conditions in Birmingham are pointing in meaningfully different directions. Local data and advice from professionals familiar with the specific market remain important inputs to any decision.
The shift in UK rental market conditions is worth tracking closely, whether you are planning a move, reviewing a portfolio, or simply trying to understand where the market is heading. If you would like to understand how these trends apply to your situation, we can help you work through the details.
Have questions about how this affects your situation? Talk to us and we can help you work through the next step.
This article is based on confirmed data from the Zoopla June 2026 Rental Market Report and supporting sources. Zoopla's figures are drawn from its proprietary Rental Market Index, which tracks asking and achieved rents on its platform; they are not equivalent to ONS official rental statistics. Where claims are inferred rather than directly stated, this has been noted in the text. Requirements and market conditions change. Always verify current figures and confirm your specific situation with a qualified local property professional or licensed adviser before making decisions.
