Tenants in the cheapest areas are seeing rents rise twice as fast as the national average.
A new Zoopla analysis shows rents are rising 5% on average in more affordable areas where rents are below £750 pcm.
This is more than twice the national average of 2.1%.
Regionally, Carlisle (+9.1%), Kilmarnock (+9%) and Halifax (+6.5%) are among the fastest-rising markets where rents are rising quickly off a lower base.
On the other hand, the likes of Bournemouth (-1.7%), Nottingham (-1.5%) and Birmingham (-1.1%) have each seen rents fall, with weaker demand and affordability pressures keeping rental growth lower across most UK cities
Despite this, average earnings nationally are growing at 4% YoY – nearly twice the rate of UK rental inflation.
However, enquiries per rented home at its lowest level for six years – hitting 5.6 enquiries per rental listing
London is the only region bucking the trend of weaker demand for rented homes. The capital is the only area to see an increase in demand, with enquiries 6% higher year on year.
Higher mortgage rates have also kept the capital’s would-be first time buyers renting.
Additionally, with no change in the number of homes available to rent, rent inflation has risen to 2.2%, from 1.9% a year ago, with the average rent now £2,206 per month. This shows how price pressure in the rental market is also impacting the sales and buying markets.
Zoopla expects rental inflation of 2% to 3% over the remainder of 2026.
But it warns that without a meaningful increase in the supply of homes to rent, this improvement to affordability will remain fragile and renters in lower-cost areas, who have the fewest alternatives, will continue to bear the greatest burden.
Richard Donnell, executive director at Zoopla, says:“Our latest report shows just how fast the gap in rents is closing between more affordable regions and major cities where rents are highest.
“Rent inflation is more subdued across most of the UKs major cities due to already stretched affordability levels for renters.
“While demand for renting is at its lowest level for six years, low levels of new investment in private rented housing means an ongoing scarcity of homes for rent which is keeping an upward pressure on rents.
“It’s positive that earnings continue to grow faster than rents at a national level but the experience of renters in local areas varies widely and is a challenge for lower income renters.
“Growing the supply of rental homes is the single most effective way to improve affordability for private renters, particularly those in traditionally more affordable areas who have the fewest choices and are facing the sharpest increases.”
This article is taken from Landlord Today