The latest insight on the UK Rental Market from Zoopla’s Rental Index has revealed that annual rental growth for new lets increased by 8.3% in Q4 2021 as demand gained momentum amid a chronic shortage of supply.

GráinneGilmore, head of research at Zoopla, said: “Rental demand has risen strongly amid increased activity in city centres, but supply is still constrained, leading to the fastest growth in rents in Q4 than at any time over the last 13 years.”

Average UK rents rose 3.7% in Q4 2021 taking the annual rate of rental growth across the UK to 8.3%. This further rental growth was underpinned by a continued rise in rental demand, particularly in city centres, amid a chronic shortage of supply. The average rent for the UK is now at £969pm, a new high, and £62pm higher than at the start of the pandemic.

London leads the way in terms of rental growth, with a 10.3% annual rise. Even so, given the falls in London rents during the pandemic, rents in London are only modestly above where they were at the start of the pandemic. In March 2020, the average London rent was £1,622, and in December 2021, it had risen to £1,640.

Rents have risen in every other region and country in the UK, with growth ranging from 4.8% in Scotland to 10.2 % in Northern Ireland.