Average rents for new tenancies have climbed above £1,000 a month in more than half of Britain’s local authority areas, underscoring the growing strain on tenants across the country.
Research from property portal Zoopla shows that 52% of local authorities in England, Scotland and Wales now record average rents at or above £1,000 per month. In 2020, just 23% of areas had crossed that threshold.
The expansion of the “£1,000 rental zone” has spread well beyond London, radiating into the South East, South West and major regional cities. What was once largely a capital phenomenon has become the norm in much of southern England and increasingly common in urban centres elsewhere.
Zoopla calculates that average rents have risen by 36% between 2020 and 2025, reflecting the sharp surge in housing costs following the easing of pandemic restrictions. The figures are nominal and do not adjust for inflation, but they highlight the significant rise in headline rents over a relatively short period.
While average wages have also risen during that time, many renters say increases in earnings have not kept pace with housing costs. For those already stretched by food, energy and transport bills, higher rents have intensified broader cost-of-living pressures.
Victoria Fear, a 51-year-old nurse living in Dumfries and Galloway, said available rental properties in her area were scarce and increasingly unaffordable. After eight years in her home, she has been told her rent will rise from £950 a month to £1,300.
“All my money goes on rent, bills and food,” she said. “We’ve not had a holiday in years.”
Temporary rent controls introduced in Scotland during the pandemic expired in April 2025. New long-term measures will allow ministers to designate rent control areas by 2027, but in the meantime many tenants face steep increases.
Fear, a single mother of three, said she understood landlords responding to market conditions but questioned the affordability of so-called market rents. “I don’t have an issue with market-value rent, but it is not an affordable proposition,” she said.
Zoopla’s data suggests that although rents remain high, the pace of increases has slowed significantly. Annual rent growth for new tenancies has eased to 1.9%, the lowest level in four years. Supply has also improved, with 14% more homes available to rent than a year ago, reducing the likelihood of competitive bidding wars.
Demand for rental homes is also at its weakest start to a year in seven years, partly reflecting lower international migration for work and study, as well as improved conditions for some first-time buyers.
Richard Donnell, executive director at Zoopla, said the market was beginning to shift in renters’ favour.
“While renting has become more expensive and is an important cost for household budgets, the market is shifting in renters’ favour,” he said. “Cost-of-living pressures from rent are easing rather than intensifying.”
However, industry groups warn that underlying cost pressures could continue to push rents upward. Chris Norris, chief policy officer at the National Residential Landlords’ Association (NRLA), said some landlords were building in increases of 4% to 5% to “future-proof” against upcoming regulatory changes.
Landlords face tighter tenancy rules under the Renters’ Rights Act in England, alongside higher compliance costs. Many are also investing in energy efficiency upgrades to meet new standards, while changes to income tax on rental income in 2027 are expected to raise liabilities for some property owners.
Beyond price pressures, the rental market is also seeing demographic shifts. According to SpareRoom.com, renters are remaining in flat shares later in life. Under-25s now account for 26% of the flat-share market, down from 32% a decade ago. In contrast, renters aged 45 and over represent 16% of the market, up from 10% in 2015, leading to more multi-generational house shares.
Zoopla forecasts that rents will rise by between 2% and 3% over 2026, a far more modest increase than in recent years, but still an upward trajectory.
For many tenants, the £1,000-a-month benchmark has become the new baseline rather than an outlier, reinforcing concerns about long-term affordability in Britain’s private rented sector.
