Property portal giant says it expects rent prices to accelerate by end of 2026

Rising mortgage rates are intensifying pressure on the UK rental market, with annual price growth projected to reach 4% to 5% by the end of the year.

Property portal giant Zoopla noted that elevated borrowing costs are keeping prospective buyers in tenancy for longer, driving up demand for rented homes.

Simultaneously, the stock of available rental properties coming onto the market has remained lower in recent months compared to 2025 levels.

Annual rent increases accelerated to 2.6% in July—up from 1.6% in February 2026—bringing average UK monthly rents to £1,340, Zoopla said.

Richard Donnell, executive director at Zoopla, said: “The rental market is starting to tighten again after three years in which the supply of homes for rent has steadily improved and rental growth slowed, easing the pressure on renters.

“Our latest report shows how sensitive the rental market is to even modest changes in how many homes are available for rent.

“Higher mortgage rates are not just impacting the sales market, they are keeping more would-be first-time buyers in rented homes for longer, reducing available supply just as the seasonal upturn in demand gets into full swing.

“This is pushing rents higher again, mainly in regions where the availability of homes for rent has declined the most, although affordability remains an important constraint on how far rents can rise.

“The upward pressure on rents is greatest in London, where higher mortgage rates have had the biggest impact on home buyers, and in more affordable rental markets where renters have greater capacity to absorb increases.

“Low levels of new investment by landlords and renters renting for longer mean we expect UK rents to increase by four to 5% by the end of the year.

“Growing the number of homes for rent through increased investment is the most sustainable route to boosting choice for renters and ensuring stability in rent levels over the long run.”

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