Competition for rental homes has fallen to its lowest level in six years, with landlords receiving just 4.8 enquiries per property compared to 6.5 a year ago, according to Zoopla’s latest Rental Market Report.
The shift reflects a 14 percent year-on-year drop in tenant demand alongside an 11 percent increase in rental supply – a combination that is rebalancing a market that peaked in pressure during 2022 and 2023.
First-time buyers and migration drive demand decline
Two factors are behind the fall in rental demand. First-time buyer activity has increased as mortgage conditions have improved, with three-quarters of first-time buyers exiting the rental market when they purchase.
Net migration has also slowed significantly. ONS estimates show migration peaked at 944,000 in the year to March 2023 but has fallen to 204,000 in the year to June 2025 – a 78 percent decline that has reduced pressure on rental housing.
Some of the supply increase comes from would-be sellers switching to letting when they struggle to sell – a trend that may prove temporary once the sales market improves.
Time to find a tenant has increased to 20 days on average, up from 13 days at the 2022 peak. For tenants, this means more choice and more room for negotiation on terms.
North-South divide in rent movements
Rental growth has slowed to 1.9 percent annually, down from 2.8 percent a year ago. However, regional patterns vary sharply.
Northern cities continue to see stronger increases, with Liverpool recording 4.6 percent growth and Newcastle at 4.5 percent. In contrast, Birmingham rents fell 0.7 percent and Nottingham dropped 0.8 percent. Bristol grew just 0.8 percent and Cambridge only 0.1 percent.
London rents increased 1.7 percent to an average of £2,187, reflecting weaker demand in the capital relative to recent years.
Richard Donnell, Executive Director at Zoopla, said: “Market conditions for renters are the best they have been for 6 years. The rental market is moving back towards balance as demand cools and more homes become available to rent.”
However, Donnell warned that supply remains below pre-pandemic levels, meaning long-term affordability improvements will require more rental homes entering the market.
Propertymark warns supply pressure remains
Nathan Emerson, CEO of Propertymark, cautioned against reading too much into the supply increase. “Any reported uplift regarding additional rental properties being available must closely acknowledge the scenario of there still being intense pressure on supply,” he said.
Emerson added that Propertymark members report a near 7 percent increase in landlords choosing to sell their properties year-on-year – a trend that could reverse supply gains if it continues.
This follows Landlord Knowledge’s report on first-time buyer numbers hitting a 20-year high, which has directly contributed to reduced rental demand.
The ONS international migration data underpins the demand analysis.
What this means for landlords
- If you’re in a southern or Midlands city: Rents may be flat or falling locally – price competitively to avoid extended voids.
- Watch for: The 7 percent rise in landlord sales could tighten supply again later in 2026, particularly after the Renters Rights Act takes effect.
- Bottom line: Twenty days to let is still fast by historical standards, but landlords used to same-week lettings should adjust expectations.
Editor’s view
Six years of frantic competition made landlords forget what a normal market looks like. Twenty days to let and 4.8 enquiries per listing would have seemed healthy in 2019. The shift benefits tenants now, but the 7 percent landlord exit rate suggests this rebalancing may be short-lived. Migration policy and mortgage rates will determine whether we return to scarcity or settle into something sustainable.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 11 March 2026
Sources: Zoopla, Propertymark, ONS
Related reading: Private rental sector shrinks £48bn as landlords exit market
