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Zoopla UK Rental Market Report – December 2024

Research and Insight
Top insights
Executive summary
Rents are 3.9% higher over the last year, the lowest rate for 3 years
Rental inflation ranges from a high of 10.5% in Northern Ireland to a low of 1.3% in London over the last 12 months
The imbalance between supply and demand is narrowing but will remain an ongoing characteristic of the rental market over 2025
Affordability will be a growing constraint on rental inflation in areas with the highest rents
The average annual UK rental cost has risen by £3,240 since 2021 - a 27% increase compared to earnings growth of 19%
Average UK rents are expected to rise by 4% in 2025, with large cities and London lagging while rents rise in more affordable areas
+ 3.9 %

Annual rental inflation for new lets, UK

3.2 k

Increase in annual average rental costs since 2021

+ 31

Demand for renting compared to pre-pandemic levels

“Rental market and London lagging while rents rise in more affordable areas conditions are improving, but the supply/demand imbalance is set to remain over 2025. Affordability will limit rental inflation in areas with high rents, but there is room for rents to rise faster than earnings in more affordable areas over 2025.”

Richard Donnell Executive Director
Rental demand falls from a high base as a supply recovers off a low base
Source: Zoopla Research
Source: Zoopla Research % change - 4 weeks to 1 December 2024 compared to the same period in 2023 and 2019