UK rents in affordable areas climb 5% as supply shortage drives higher prices

Zoopla’s latest Rental Market Report shows rents in UK locations where monthly rents are £750 or less rose by 5% on average, more than double the national increase of 2.1%. The steepest rises were recorded in Carlisle (9.1%), Kilmarnock (9%) and Halifax (6.5%). By contrast, rents fell in Birmingham (‑1.1%), Nottingham (‑1.5%) and Bournemouth (‑1.7%) as demand weakened.

The report also noted that demand for rented homes is at its lowest level in six years, while average earnings grew by 4%, marking 18 consecutive months of wage growth outpacing rent inflation. Zoopla executive director Richard Donnell said the data illustrate a “closing gap” between affordable regions and major cities, but warned that a chronic shortage of private‑rented housing continues to push prices up in lower‑cost areas. Property experts echoed the need for greater investment in rental supply to improve affordability for lower‑income renters.