Zoopla Forecasts Rental Price Growth to Accelerate by End of 2026

New analysis from property portal Zoopla suggests that UK rental prices are set to rise by 4% to 5% annually by the end of 2026. This forecast comes as the rental sector grapples with the ongoing impact of elevated mortgage rates, which are keeping potential buyers trapped in the rental market. The resulting surge in demand, coupled with a shrinking supply of rental properties, is putting significant upward pressure on monthly costs.

While rental growth had previously shown signs of slowing, the current market dynamics indicate a reversal of that trend. With the average rent already sitting at £1,340 per month, these projected increases will likely place further strain on household budgets across the country. The combination of limited stock and sustained demand suggests that the rental market will remain highly competitive for the foreseeable future.

Mike Georgeson, CEO of Matriva, commented: “This underlines the reality that affordability is going to be a major challenge for renters as we head toward the end of the year. It's a clear signal to landlords and agents that they need to be mindful of these market shifts when setting prices, as the current environment is clearly pushing costs higher for everyone involved.”

Source: Birmingham Live

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