UK Rents Rise as Rental Supply Falls: Landlord Guide

Mon 12 Oct 2026

The rental market is getting busier again. Rents are going up, there are fewer homes to rent, and more people are chasing each one. Zoopla's latest Rental Market Report shows that the average rent for a new let in the UK reached £1,343 a month in September, with yearly rental growth climbing to 2.6%.

If you own a rental property, or are thinking about letting one out, these figures matter. Here is a simple look at what has changed and what it could mean for you.

What the latest figures show

The headline is simple: demand from tenants is rising, while the number of homes to rent is falling. When that happens, rents tend to go up and good properties let more quickly.

Measure	Latest figure	What it means
Average rent for a new let	£1,343 a month	Rents for new tenancies are still rising
Yearly rental growth	2.6%	Growth has picked up again
Homes available to rent	Down 3% on last year	Fewer properties for tenants to choose from
New rental listings	Down 6% on last year	Fewer new homes are coming onto the market
Enquiries per property	5.3 on average	The highest level for almost two years
Forecast growth by end of 2026	4% to 5%	Zoopla expects rents to keep rising

Why are there fewer homes to rent?

The number of rental homes has dropped by 3% compared with this time last year. This is the first fall in about three years. New listings, which are homes that have just come onto the market, are down even more, by 6%.

There are a few reasons for this. Some landlords have sold up because of higher costs, tax changes and new rules. Others are holding on to their homes but not adding more. At the same time, many tenants are staying put in their current home for longer, so fewer properties become free each month.

Why is demand from tenants rising?

Each rental property is now getting an average of 5.3 enquiries. That is the most for almost two years. In simple terms, more people are competing for every home.

One big reason is mortgage rates. Rates are still higher than many people were used to a few years ago, so it costs more each month to buy a home. Lots of would-be first-time buyers are choosing to keep renting while they save a bigger deposit or wait for rates to come down. That keeps them in the rental market for longer and adds to demand.

How do these figures compare with the official data?

Zoopla's numbers look at rents for brand new lets, which means homes that are being advertised right now. The government also tracks rents, but it includes people who are already in a tenancy too. The Office for National Statistics' latest private rent and house prices bulletin puts the average UK monthly rent at £1,400, which shows that rents are rising across the whole market, not just for new lets.

The two sets of figures are measuring slightly different things, so the numbers will not match exactly. Both point in the same direction, though: rents are still going up.

What this means for landlords

A busy market sounds like good news for landlords, and in many ways it is. Strong demand usually means shorter empty periods between tenants and a bigger choice of people wanting to rent your home. But it does not mean you can simply set any price you like.

Here are three things worth keeping in mind:

Price it right from the start. If the rent is too high, your home may sit empty while tenants choose a better value property nearby. If it is too low, you could be missing out on income every month for the whole tenancy.
Choose the right tenant, not just the first one. With more enquiries coming in, careful checks matter more than ever. A reliable tenant who stays for a long time is often worth more than a slightly higher rent.
Keep up with the rules. The Renters' Rights Act has changed how tenancies work in England, so it is important to make sure your paperwork, safety checks and rent increase process are all up to date.

If you are new to letting or want a second opinion on your rent, our landlord services can help you understand what your property could achieve in today's market.

What this means for tenants

For people looking to rent, the market is more competitive than it has been for a while. Homes can be snapped up quickly, so it helps to be ready. Have your references, proof of income and deposit sorted before you start viewing, and be prepared to move fast if you find a home you like.

The picture in South Essex

National figures are a helpful guide, but every local market is different. In Benfleet, Hockley and the nearby towns, demand often depends on things like school catchment areas, train links into London and the type of homes available. A two-bedroom flat close to the station may let very differently from a family house on a quiet road.

This is why local knowledge is so valuable. Our lettings team in Benfleet and Hockley sees what tenants are asking for every day and can advise you on the right rent for your street, not just the national average.

Should you let your property yourself?

With more enquiries to handle, more checks to carry out and more rules to follow, letting a home can take up a lot of time. Some landlords are happy to do it all themselves. Others prefer to hand over the day-to-day work, from finding tenants to arranging repairs and making sure the property stays legal.

If you would rather have someone look after this for you, our property management service takes care of the details so you can enjoy the income without the stress.

Frequently asked questions

Will rents keep going up?

Zoopla expects rents to rise by 4% to 5% by the end of 2026. This is a forecast, not a promise, but with fewer homes to rent and steady demand from tenants, most experts expect rents to keep rising for now.

Is now a good time to become a landlord?

Strong demand can make it a good time to let a property, but it is important to look at the full picture. Think about mortgage costs, tax, repairs and the latest rules before you decide. Speaking to us first can help you see whether the numbers work for you.

How do I know the right rent for my property?

Talk to Williams and Donovan's Lettings team on 01702 200666, line 3. They will look at similar homes nearby, how quickly they let and what tenants are paying right now, so you can set a rent that attracts good tenants without leaving money on the table.