Rental market rebalancing: what improving supply means for your situation

For much of 2022 and 2023, the UK rental market operated under extraordinary pressure.

No. 14943 from our magazine|2 min read| Published in Magazine on 21 April 2026 by our Marketing Team

Demand vastly outstripped supply, rents climbed sharply, and tenants found themselves competing aggressively for properties that were letting within days. That period is not entirely behind us, but the picture in spring 2026 looks meaningfully different, and the shift has practical implications for both tenants and landlords navigating the market this April.

What the data is showing

Zoopla’s most recent rental market report, published in March 2026, provides the clearest snapshot of where the market currently stands. Rent growth has slowed to 1.9%, down from 2.8% a year ago, as affordability pressures limit further increases. The average rent for new lets in the UK now stands at £1,319 per month. That figure represents a significant deceleration from the peak growth rates seen during the rental boom.

There are now 11% more homes for rent than a year ago, driven by stronger first-time buyer demand and some homeowners choosing to let rather than sell. At the same time, demand for rental homes is 14% lower than a year ago and at its lowest level for six years.

The result is a market that is becoming more balanced, though not a soft market. Rental supply remains 23% below pre-pandemic levels, meaning rents are still expected to rise through 2026, with forecasts suggesting increases of around 2 to 3% over the year.

What this means if you are a tenant

The improvement in conditions is real and worth understanding. Tenants can expect greater choice, slower rent increases, and a less competitive environment than in recent years. Many landlords are now taking longer to let properties, giving tenants more time to make informed decisions.

Affordability is also gradually improving, with earnings rising faster than rents over the past 18 months. The annual rent for a typical property outside London now represents 33.5% of gross annual earnings for a single person, down from more than 35% in 2023.

If you are renewing a tenancy this spring, improved supply strengthens your negotiating position. Research comparable properties before agreeing to rent increases and raise any concerns in writing.

What this means if you are a landlord

The rebalancing requires recalibration rather than concern. Time to let has lengthened across the UK, with average marketing periods ranging from 14 to 19 days. Pricing properties accurately from the outset is now more important than during peak demand periods.

Rental growth remains stronger in more affordable northern markets, with cities such as Liverpool, Newcastle, and Glasgow still recording increases of 3% to 4.6%. In contrast, rents are rising slowly or falling in some areas. Understanding local dynamics is essential before setting rent levels.

The case for retaining well-maintained properties with reliable tenants remains strong. Despite improving supply, structural demand for rental accommodation continues to support rental values.

The broader context

The rebalancing of the rental market is welcome after several years of intense pressure. Supply is improving, competition has eased, and rent growth is moderating. However, demand for quality rental homes remains strong.

For tenants, this spring offers greater flexibility and choice. For landlords, it rewards accurate pricing, proactive management, and understanding of local market conditions.

Contact our team to help you make the most of the current market

This article was originally published by BriefYourMarket and is reproduced here with their permission.

For more company news and insights from Pygott & Crone, click here

HOW CAN WE HELP?