Zoopla UK Rental Market Report – March 2025

Research and Insight

Top insights

Executive summary

Annual rent inflation for new lets running at lowest level for 3.5 years

Rents increase by 3% over last year, down from 7.4% a year ago

Supply/demand balance narrowing, with 11% more homes for rent and rental demand 17% lower than a year ago

12 renters chasing each home for rent - down 42% on 2022-24 levels but still higher than pre-pandemic

Affordability is a growing constraint on rent rises, with the annual cost of UK rents increasing by £3,000 a year to £15,400

The rental market needs more supply - rental reforms and other proposed policy changes will limit new investment and supply growth

UK rents expected to increase 3-4% over 2025

Including the House Price Index Report and the Rental Market Report.

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Annual rental inflation for new lets, UK

Renters chasing each available rental home

Rental inflation in London

“Rental inflation has slowed, which will be welcome news to renters, but there are still 12 people chasing every home for rent. Growing supply is essential to support those on lower incomes and policy reforms for the rental market need to minimise the impact on supply.”

Richard Donnell Executive Director

Rental supply demand imbalance narrowing but has further to go

Zoopla UK Rental Market Report – March 2025

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