Finding a tenant now takes an average of 20 days - a week longer than in 2022 – as first-time buyers reduce demand for rental homes.

Demand has fallen by 14% over the last year, while the number of homes available for rent has increased by 11%, according to Zoopla’s latest rental market report. The result is that rents for new lets increased by just 1.9% over the last year, down from 2.9% a year ago.

With three-quarters of first-time buyers coming out of the rental market, more favourable conditions in the mortgage market have boosted first-time buyer numbers, helping to free up the number of homes for rent.  

Increase

However, the increase also stems from would-be sellers deciding to rent out their property, particularly if they are struggling to sell, while the latest ONS estimates reveal net migration slowed to 204,000 in the year to June 2025, further reducing demand.

Rental growth remains stronger in the more affordable markets in Northern England and Scotland, according to Zoopla, with certain cities seeing increases of 3%-4%+, such as Liverpool and Newcastle which recorded growth of 4.6% and 4.5% respectively.

Remains

However, it says supply remains well below pre-pandemic levels, which means increasing the number of rental homes is key to improving affordability for UK renters over the long term.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says in the run up to the Renters’ Rights Act taking effect, an increasing proportion of landlords aren’t renewing agreements and trying to sell despite the attraction of higher rents and yields. “We’re finding many of those staying put are increasing rents to market levels while they can but ensuring references, guarantees and insurance are up to speed as well as instructing qualified agents to reduce the risk of problems arising,” he adds.

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