UK Rental Supply Falls for First Time in Three Years as Rents Accelerate

The supply of homes available to rent in the United Kingdom has fallen for the first time in three years, driving a re-acceleration in rent growth that property website Zoopla forecasts will reach 4% to 5% by the end of 2026. The data, published in Zoopla's latest Rental Market Report, indicates a significant shift in market dynamics after a period of slowing inflation. According to the report, the number of rental properties on the market is now 3% lower than a year ago, with the decline accelerating to 6% in August. This contraction in supply began in May 2026, ending a three-year period of gradual improvement that had helped ease pressure on tenants. At the same time, tenant demand has risen to 5.3 enquiries per rental listing as of early September, the highest level in nearly two years. The average rent for new tenancies across the UK stands at £1,340 per month, with annual growth recorded at 2.6% in July. Zoopla has revised its full-year forecast upward, now expecting annual rent increases to hit 4% to 5% by December, a sharp change from its earlier projection of 2% to 3%.