It has been found that in areas where average rents are £750pcm or less, costs rise by 5% on average. This is more than twice the national average of 2.1%.
But Zoopla’s latest rental market report also shows that demand for rental properties has fallen to the lowest level in six years.
In which areas are prices rising the most?
Carlisle is where rents are rising fastest from lower levels, according to Zoopla. They are up 9.1% over the past year.
Next up is Kilmarnock, where average rents have increased by 9% and Halifax, where rental costs are up 6.5% compared to this time last year.
Zoopla said that in these places average rents of around £700 are 45% to 50% below the UK average.
Are there areas where rents are falling?
The good news is that there is relief for renters in other parts of the country. Zoopla said rents rose by 2.1% nationally, but this is down from 2.6% this time last year.
Average revenues are growing at 4%, meaning revenues have exceeded rental growth over the past 18 months.
There are also areas where rental prices have fallen in the past year, according to Zoopla. These include Bournemouth, where average rents have fallen by 1.7%, Nottingham, where rents have fallen by 1.5% on average, and Birmingham, where costs have fallen by 1.1%.
These areas experienced weaker demand affordability pressures, keeping rental growth lower.
In most areas where rents are above £1,250pcm, the growth rate is at or below the national average, as high rental costs limit how much further rents can rise.
Every UK region has 20% to 30% fewer homes to rent than before the pandemic, with a lack of new investment putting upward pressure on rents and limiting choice for tenants.
The cost of renting in London
For anyone looking to rent in the capital, demand is high – according to Zoopla, applications are up 6%.
It says higher mortgage rates have kept aspiring first-time buyers in London in the rental market.
Zoopla explains that, with no change in the number of properties available to rent, rental inflation has risen to 2.2%, up from 1.9% a year ago, with the average rent now £2,206 per month. This shows how price pressure on the rental market also influences the sales and purchase markets.
Richard Donnell, executive director of Zoopla, said: “Our latest report shows how quickly the gap in rental prices is closing between more affordable regions and major cities where rents are the highest.
“Rent inflation is more muted in most of Britain’s major cities due to already high affordability levels for renters.
“While demand for rental properties is at its lowest level in six years, the low level of new investment in private rental properties means a continued shortage of rental properties, maintaining upward pressure on rental prices.”
Rental prospects for 2026 and advice to tenants and landlords
For the remainder of 2026, Zoopla expects rental inflation of 2% to 3%. But without a meaningful increase in the supply of rental housing, the report said, this improvement in affordability would “remain fragile” and renters in cheaper areas, which have the fewest alternatives, will continue to bear the greatest burden.
Julie Ford, property expert and founder of Lettings Advice Service, provided advice to tenants and landlords. “Act quickly, but stay realistic,” she said. “Good properties move quickly, but tenants should still take the time to understand the total monthly costs, including utilities and council tax.
“It’s also important to get your paperwork ready early. If you have references, ID and proof of income prepared, you can move quickly in a competitive market and have credit ready to transfer.
“It is important for landlords to regularly assess your property. By staying up to date with local market trends, you can ensure that the property is rented out quickly.
“It is also important to present the property well to attract higher quality tenants. Fresh paint, clean areas and minor repairs can significantly reduce vacancy times.”