Zoopla predicts UK rents to climb 4-5% by year-end as mortgage rates stay high
Zoopla says rising mortgage costs are keeping buyers in rental homes longer, pushing average UK rents toward a 4-5% increase by the end of the year.
Zoopla warns that elevated mortgage rates are trapping prospective first-time buyers in the rental sector, tightening the market after three years of easing. The limited influx of new rental units, which is below 2025 levels, has coincided with a jump in average monthly rents to £1,340 and a July year-on-year increase of 2.6%. Executive director Richard Donnell notes that the rent surge is most pronounced in London and other regions where rental stock has fallen the most.
The portal projects overall rent growth of four to five percent by the end of the year, citing low landlord investment and longer tenant stays as key drivers. It argues that expanding the supply of rental homes through greater investment is the most sustainable way to curb rent inflation.
Why it matters
Higher rents affect millions of UK renters and could intensify housing affordability challenges.
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