The latest Zoopla Rental Market Report (June 2025) shows the average rent for new tenancies stands at £1,287 per month (April 2025), marking a 2.8% increase over the past 12 months. This is a sharp slowdown from last year’s 6.4% and represents the slowest rental inflation rate since July 2021.

Although rental supply has risen 17% compared to a year ago, it remains about 20% below pre‑pandemic levels . Meanwhile, tenant demand is down 16% from last summer yet still sits 60% above pre‑pandemic norms
Experts caution that despite the slowdown, competition for rental properties remains intense.

Regional trends

In Yorkshire and the Humber, rental growth has weakened particularly in university cities like Sheffield (1.9%), Bradford (1.4%) and in particular Leeds (-1.5%) where rents have fallen compared to last year.

At a more local level across the country, rents have risen quickly in affordable areas, often adjacent to large cities. Examples include Wigan (8.8%), Carlisle (8.8%), Motherwell (8.3%), Chester (8.2%), Blackburn (8.0%).

This difference in rental inflation between larger cities and smaller towns contrast with rent inflation between 2022 and 2023 when the fastest increases where in the capital and larger cities a. Rent inflation did increase across the rest of the country but to a lesser degree.

Rents outpace house prices

Average UK rents are 21% higher over the last 3 years compared to just 4% for house prices.

Higher mortgage rates since 2022 reduced buying power in the sales market, reducing demand from home buyers and resulting in house price falls over 2023. Home buyers were locked out of the sales market, boosting demand for rented homes, compounded by high levels of migration which pushed rents higher.

Outlook for the rest of 2025

Zoopla anticipates rents to climb by another 3%-4% this year. Policy changes including the upcoming Renters’ Rights Bill and requirements for improved energy ratings could however dampen new supply coming online.