The property website noted that demand for rented accommodation has climbed in recent months, as higher borrowing costs force aspiring homeowners to stay in the rental market for longer periods, The Independent reported.
Meanwhile, the supply of available properties entering the market has lagged behind the levels seen in 2025 over recent months.
Annual UK rental growth accelerated to 2.6 percent in July, up from 1.6 percent in February 2026, bringing the average monthly rent to £1,340.
Richard Donnell, executive director at Zoopla, said, "The rental market is starting to tighten again after three years in which the supply of homes for rent has steadily improved and rental growth slowed, easing the pressure on renters.”
"Our latest report shows how sensitive the rental market is to even modest changes in how many homes are available for rent.”
"Higher mortgage rates are not just impacting the sales market, they are keeping more would-be first-time buyers in rented homes for longer, reducing available supply just as the seasonal upturn in demand gets into full swing,” Donnell said.
"This is pushing rents higher again, mainly in regions where the availability of homes for rent has declined the most, although affordability remains an important constraint on how far rents can rise.”
"The upward pressure on rents is greatest in London, where higher mortgage rates have had the biggest impact on home buyers, and in more affordable rental markets where renters have greater capacity to absorb increases,” Donnell said.
"Low levels of new investment by landlords and renters renting for longer mean we expect UK rents to increase by four to 5 percent by the end of the year,” he added.
"Growing the number of homes for rent through increased investment is the most sustainable route to boosting choice for renters and ensuring stability in rent levels over the long run," Donnell said.