Rent prices are going up much more slowly than before, in good news for millennials, Gen Z-ers and everyone else struggling with housing costs.

Amid general gloom about the property market – house prices are falling and mortgage costs are going up – Zoopla says competition to land a rented home is at its lowest for six years.

The price of rent is going up 1.9 per cent year-on-year, down from 2.8 per cent before, leaving the average monthly rent at £1,319.

That is down to an increase in supply of rental properties, though there does seem to be a fresh north-south divide emerging.

Zoopla, a leading property website, says enquiries per property have dropped from 6.5 to 4.8 in the four weeks to March 1 compared to a year ago and now sit at more than half of the peak figures seen in 2022 and 2023.

Crucially, wages are rising faster than rental prices.

But in London, the rental market remains incredibly tough due to a lack of supply.

Tom Bill, head of UK residential research at Knight Frank, said: “More balance has returned across the UK but in the capital, where renting is twice as common, there is still a notable lack of supply in many areas that is pushing rents higher.

“Some landlords have already sold due to extra red tape and taxes while others are waiting to see how disruptive the Renters Rights Act is when it comes into force in May. With tougher green regulations also coming down the line, further upwards pressure on rents cannot be ruled out.”

In some UK cities, rent prices are actually falling. Zoopla thinks that is partly due to lower immigration.

The latest ONS estimates reveal net migration into the UK peaked at 944,000 people in the year to March 2023 and this has slowed to 204,000 in the year to June 2025.

Until the war in Iran began, mortgages were getting cheaper. That has also helped renters get home loans which has freed up the number of homes for rent.

The annual rent for the average property outside of London is now 33.5 per cent of the annual income for a single person. This is an improvement from 2023 where the ratio was highest in 20 years at 35 per cent.

Rental growth remains stronger in the more affordable markets in Northern England and Scotland, with certain cities seeing increases of 3-4 per cent.

Liverpool and Newcastle saw growth of 4.6 per cent and 4.5 per cent respectively.

In contrast, several cities across the Midlands and Southern regions are seeing lower or even negative price growth, with Bristol growing at 0.8 per cent and Cambridge at just 0.1 per cent.

In Birmingham (-0.7 per cent) and Nottingham (-0.8 per cent) rents are falling. In London, rents are growing at a relatively low 1.7 per cent, with the average rent now sitting at £2,187.

Richard Donnell, executive director at Zoopla, said: “Market conditions for renters are the best they have been for six years. The rental market is moving back towards balance as demand cools and more homes become available to rent. Renters are facing less competition for homes and slower rent increases than in recent years. Localised changes in demand and supply are resulting in rents falling in some cities but this will be only a short lived trend.”

Unfortunately, supply remains well below pre-pandemic levels, which means increasing the number of rental homes remains key to improving affordability for the UK renters over the long term.

Harry Watts, lettings director at London agent Douglas & Gordon said: “We’re seeing a more mixed picture on the ground in central and south west London.

“While the market has become more balanced compared with the 2022–23 peak, applicant registrations are still up 18 per cent so far this year versus the same period last year, which points to continued underlying demand for well located, good quality homes.

“At the same time, as we move closer to the Renters Reform Act, we’re seeing more tenants being asked to move at points in the year when they would not typically expect it. In many cases, this appears linked to landlords reassessing their position and, in some instances, choosing to sell, which is becoming more prevalent.

“And even where rental growth is cooling, there is a clear affordability ceiling. Over the past couple of years, tenant incomes have struggled to keep pace with pricing, so correctly priced homes let well, while anything ambitious is taking longer and facing sharper negotiation.”