The number of homes available to rent in the UK has fallen 3% year-on-year, ending three years of improving supply and putting renewed upward pressure on rents, according to Zoopla.

Average rents for new lets reached £1,343 in September 2026, 2.6% or £30 higher than a year earlier, while rents excluding London averaged £1,097. Zoopla said rents are increasing faster than the national average in 75% of local markets.

The flow of new rental properties coming to market is 6% lower than a year ago, while tenants are making an average of 5.3 enquiries per available property, 6% higher year-on-year and the highest level for almost two years.

Richard Donnell, Executive Director of Research at Zoopla, wrote: “Growing the stock of homes for rent is the best long-term solution to improving rental affordability.”

London is experiencing one of the biggest squeezes, with the number of available rental homes down 6% and annual rental growth increasing to 2.9%, from 1.7% a year earlier.

The position is more pronounced in inner London, where rental availability has fallen 13% while demand has increased, pushing rent growth to between 3% and 4%. Yorkshire and the Humber has also seen supply fall sharply, with 12% fewer rental homes available. Wales, by contrast, has recorded a 7% increase in available stock.

Zoopla said higher mortgage rates are also keeping would-be first-time buyers in rented accommodation for longer. It expects rental growth to accelerate further, potentially reaching between 4% and 5% by the end of 2026.