Rents for new tenancies are rising at their slowest pace in four years, with annual growth falling to just 1.9 percent, according to the latest data from Zoopla. Yet despite the slowdown, more than half of local authorities across Britain now have average rents exceeding £1,000 per month.
The figures show 52 percent of local authorities have crossed the £1,000 threshold, up from just 23 percent in 2020. The shift has been particularly pronounced in southern England, where 98 percent of South East councils and 80 percent of Eastern councils now exceed the mark.
Supply rising as migration slows
Zoopla attributes the slowdown in rent growth to a 14 percent increase in available rental homes compared to a year ago. The easing is largely driven by a decline in international migration for work and study, combined with improved conditions for first-time buyers who typically leave the rental market when purchasing their first home.
This follows Landlord Knowledge’s February report on rental market cooling, which found rents stalling as tenants became more cautious about affordability. The latest figures suggest that trend is continuing, offering some relief for tenants after years of rapid increases.
Richard Donnell, executive director at Zoopla, said the market is shifting in renters’ favour despite the sustained high costs. “While renting has become more expensive and is an important cost for household budgets, the market is shifting in renters’ favour,” Donnell said.
“Slower rent growth, increased choice, and more stable outlooks mean cost-of-living pressures from rent are easing rather than intensifying. Growing the size of the rental market – private and affordable homes – is the best route to further reducing the pressure on renters.”
Regional breakdown shows stark divide
The data reveals a clear north-south divide. Every London borough now exceeds £1,000 per month, while the South East has seen the largest shift – from 50 percent of councils in 2020 to 98 percent in 2025. Areas that have recently tipped over the threshold include the City of Nottingham at £1,015, Leeds at £1,013, and Stirling in Scotland at £1,040.
In contrast, only 8 percent of North East councils and 11 percent of North West councils have crossed £1,000. Combined with recent analysis showing tenants spending 36 percent of income on rent, the figures highlight ongoing affordability challenges despite the headline slowdown.
What this means for landlords
- If you’re in the South: Properties may take longer to let as tenants become more selective. Pricing realistically is now critical to avoid void periods.
- Watch for: The first-time buyer market is absorbing former renters. Landlords selling properties may face less competition for buyers than previous years.
- Bottom line: Rent growth is normalising after years of double-digit rises. Landlords should budget for slower income growth but benefit from more stable, longer-staying tenants.
Editor’s view
The slowdown in rent growth marks a welcome shift for both landlords and tenants. For landlords, slower growth means less tenant churn and more predictable income. For tenants, it means breathing room after years of relentless increases. The market is finding a new equilibrium – and that stability benefits everyone.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 2 March 2026
Sources: Zoopla
Related reading: UK rents stall as tenants act more cautiously
