Zoopla December Rental Market Report
Zoopla’s latest rental market report highlights key trends for landlords, investors, and tenants. From slower rent growth to rising affordability pressures, here’s a quick look at what’s happening in the market and what to expect in 2025.
Zoopla’s latest rental market report is here, and it’s essential reading for landlords, investors, and tenants navigating today’s rental landscape. Here’s what you need to know about the current trends shaping the market.
Key Highlights
- Rental growth slows: UK rents rose 3.9% in the past year, marking the slowest growth in three years. The average monthly rent now stands at £1,270.
- Demand levels out: Demand for rentals has dropped 29% compared to last year, but it’s still 31% higher than pre-pandemic levels.
- Costs keep climbing: Renters are paying an average of £3,240 more per year compared to 2021, highlighting the ongoing affordability squeeze.
What’s Happening Across the UK?
- London slows: Rental growth in London has dropped to just 1.3% annually, with average rents at £2,190/month.
- Northern regions surge: Northern Ireland (+10.5%) and the North East (+8.7%) lead the way.
- Affordable areas in focus: Renters are increasingly gravitating towards more affordable areas, where demand is driving stronger growth in rental prices.
The Supply & Demand Balancing Act
- Supply on the rise but still tight: The number of rental properties is up 12% compared to last year but remains 18% below pre-pandemic levels. This limited stock is keeping pressure on rents.
- Private landlords exiting: Many landlords are selling due to rising costs and regulation, with no major increase in rental supply expected in 2025.
Looking Ahead to 2025
- More rent increases likely: Zoopla predicts a 4% rise in average rents next year, driven by demand in affordable areas. High-cost regions like London may see slower growth as affordability pressures cap further increases.
- Affordability crunch continues: With renters already stretched, the market will likely see more stability in regions where rents have risen the most, but growth opportunities remain in value-driven locations.
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