UK Rent Growth Accelerates to 2.6% in July
UK rent growth has accelerated to 2.6% in July, with Zoopla warning that sustained high mortgage rates are keeping would-be buyers in the rental market, thereby shrinking supply. The firm projects annual increases of 4-5% by the end of 2026, citing reduced landlord investment and significant pressure on availability, particularly in London.
Zoopla executive Richard Donnell clarified that the acceleration in rent growth is largely due to high mortgage rates trapping prospective first-time buyers in the rental sector, which is directly reducing available supply just as seasonal demand peaks. He noted that this dynamic is most acute in London and more affordable markets where tenants have greater capacity to absorb price hikes, reinforcing the firm's forecast of 4-5% annual increases by year-end.
Source: AOL.co.ukPer the latest GN auto markets/housing feed, Zoopla’s Richard Donnell notes that the rental market is tightening again as lower landlord investment and prolonged tenancies squeeze supply, with London facing the sharpest upward pressure on prices.
Source: The IndependentZoopla attributes the projected acceleration in rent growth to higher mortgage rates locking would-be buyers into the rental sector, which is straining an already thin supply of available homes. Richard Donnell, executive director at Zoopla, noted that this dynamic is particularly acute in London and more affordable regions where landlords have reduced investment.
Source: Yahoo Finance UKZoopla reports that annual rent increases have risen to 2.6% in July, up from 1.6% in February. The property portal projects growth could reach 5% by the end of 2026.
Source: The Independent
