Renters in some of the UK’s most affordable areas are now experiencing the fastest increases in rent, with prices rising at more than double the national average, according to new research from Zoopla. The findings highlight a growing divide in the rental market, where lower-cost regions are seeing the sharpest pressure on affordability.
The analysis shows that in areas where typical monthly rents are below £750, prices have increased by around 5% over the past year. This compares with a UK-wide average increase of 2.1%, suggesting that the strongest rental growth is now concentrated in towns and smaller cities rather than traditional high-cost urban centres.
Several locations stand out for particularly rapid growth. Carlisle has seen rents rise by 9.1%, closely followed by Kilmarnock at 9% and Halifax at 6.5%. These areas are generally starting from a lower rent base, but the speed of growth is still placing additional pressure on local tenants who may already be facing tighter household budgets.
At the same time, some of the UK’s larger cities are seeing weaker rental demand and, in some cases, falling prices. Bournemouth recorded a decline of 1.7%, Nottingham fell by 1.5%, and Birmingham dropped by 1.1%. These reductions suggest that affordability constraints are starting to limit how far rents can rise in more expensive urban areas.
Overall, wage growth is still running ahead of rental inflation at a national level. Average earnings have increased by around 4% year on year, compared with rental growth of 2.1%. However, this national picture masks significant regional differences, with many tenants in lower-cost areas feeling the impact of faster rent rises more directly.
The report also points to a noticeable slowdown in rental demand. The number of enquiries per rental property has dropped to its lowest level in six years, averaging just 5.6 enquiries per listing. This suggests that while demand remains present, it is more subdued than in previous years.
London, however, is bucking the wider trend. It is the only region to show rising demand, with rental enquiries up by around 6% year on year. Higher mortgage rates are keeping many would-be first-time buyers in the rental market, helping to sustain demand in the capital despite broader national cooling.
At the same time, the supply of rental homes across the UK has remained relatively flat. This lack of new rental stock continues to place upward pressure on prices, even as demand begins to ease in some areas. As a result, rental inflation has edged up slightly to 2.2%, compared with 1.9% a year earlier. The average UK rent now stands at approximately £2,206 per month.
Zoopla expects rental growth to remain modest over the remainder of 2026, forecasting increases of between 2% and 3%. However, the report also warns that without a meaningful increase in the number of homes available to rent, affordability improvements may be limited and uneven across the country.
Richard Donnell, executive director at Zoopla, highlighted that the gap between cheaper regions and higher-cost cities is narrowing as rents rise more quickly in traditionally affordable areas. He noted that many major cities are seeing slower growth due to affordability pressures already being stretched.
He also pointed out that although rental demand has fallen to a six-year low, limited investment in new rental housing continues to restrict supply, keeping upward pressure on prices in many locations.
While wages are currently rising faster than rents at a national level, the experience for tenants varies significantly depending on where they live. In lower-income and previously affordable areas, renters are facing some of the most noticeable increases, with fewer alternatives available.
Zoopla concludes that boosting the supply of rental homes remains the most effective way to improve affordability. Without this, tenants in lower-cost areas are likely to continue bearing the brunt of rising rents, even as broader national trends appear more stable.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property