Rents have fallen in several cities, as the balance between the number of renters and the amount of available properties tips in tenants’ favour.
According to the property website Zoopla, rental prices are stagnating or even falling in multiple locations across the Midlands and South.
In Wales, rents are down 1.7 per cent year-on-year. Rents in Bournemouth are down 1 per cent, and in Birmingham they are down 0.7 per cent.
In Nottingham they are down 0.8 per cent year-on-year, Zoopla said, while Brighton has also seen marginal falls.
However, there are still some parts of the country where rents have risen, particularly in the more affordable markets in Northern England and Scotland, with certain cities seeing increases of around 4 per cent.
For example, average rents in Liverpool and Newcastle are up 4.6 per cent and 4.5 per cent respectively.
In London, rents are growing at a relatively low 1.7 per cent year-on-year, with the average rent now sitting at £2,187.
Cooling: Tenants may find it easier to secure a new home than they did a year ago, Zoopla says
Why are rents falling?
Demand amongst renters has fallen by 14 per cent over the last year, according to Zoopla, while the number of homes available for rent has increased by 11 per cent.
This is down to a combination of factors. More landlords are selling properties due to higher taxes and stricter regulations, such as the upcoming Renters’ Rights Act.
At the same time, there has been an increase in former renters getting on the property ladder as house price rises have cooled, and an uptick in younger people continuing to live with parents rather than renting privately.
The result has been less competition between renters. Agents are receiving 4.8 enquiries per property, down from 6.5 a year ago. Homes are taking longer to rent. On average, finding a tenant now takes 20 days – a week longer than 2022’s peak of 13 days.
For renters, this means there is more room for negotiation on rent.
Richard Donnell, executive director at Zoopla says 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,’ says Donnell.
‘Renters are facing less competition for homes and slower rent increases than in recent years.’
However, he thinks this will be a short lived trend.
‘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,’ Donnell added.
Harry Watts, lettings director at London agent Douglas & Gordon, says the upcoming the Renters’ Rights Act, which comes into force on 1 May, is causing movement in the market.
The legal change will give tenants the greatest increase to their rights in a generation, with landlords facing fines of up to £40,000 if they fall foul of new rules on evictions, rent rises and more.
Watts said: ‘As we move closer to the Renters Rights 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.
‘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.’
Rise in first-time buyers
Improving conditions in the mortgage market for first time buyers have also resulted in lower demand for rented homes, according to Zoopla.
However, the shift is not purely down to first-time buyers, with this increase also stemming from would-be sellers deciding to place their properties into the rental market – particularly if they are struggling to sell.
A continued decline in migration into the UK for work and study is also a major factor, as well as a rise in people emigrating.
The latest Office for National Statistics estimates reveal net migration into the UK peaked at 944,000 people in the year to March 2023 and then slowed to 204,000 in the year to June 2025.
One property insider warned that some letting agents have seen tenant enquires fall off a cliff with landlords having to accept far lower rents.
Ashely Osborne, founder of Lexit, a service that helps analyse buy-to-let deals for investors says the lettings agents and landlords he works with suggest things could be even worse in reality.
Osborne says both the student lettings market and new build apartments are of particular concern at the moment.
‘In Manchester, we acquired a prime central purpose built student block for a client last year in February 2025.
‘It is still well below full occupancy 12 months later – at rock-bottom pricing in a top location.’
‘Foreign students are steering clear due to safety fears, family restrictions, and better options elsewhere.’
Landlords may find it hard to sell up
Landlords hoping to find salvation by selling up may struggle to do so, as the number of homes for sale is at a 10 year high, according to Zoopla.
Osborne says his company is being contacted by between three and five landlords a day looking to sell.
‘We have to break the news to them that it will be much harder to sell it than it was to buy it,’ he said.