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New research from property website Zoopla reveals that renters in over half of British neighborhoods now face average monthly rents surpassing £1,000. This represents a significant increase compared to 2020, when only 23% of local authorities saw average rents above this threshold. Despite some wage growth over the past five years, many tenants continue to find current rental prices unaffordable.
The surge in rents has been particularly marked since the easing of Covid-19 pandemic restrictions. Zoopla’s analysis indicates a 36% increase in average rents between 2020 and 2025, considerably adding to financial pressures faced by those reliant on the rental market, either by choice or necessity. The phenomenon is most pronounced in southern England and large cities, where monthly rents over £1,000 have shifted from being exceptions to the norm. Although the pace of rent increases has slowed recently, scarcity of available properties in certain areas continues to exert upward pressure on costs.
A case in point is Victoria Fear, a 51-year-old nurse from Dumfries and Galloway, who reported the scarcity of rental homes in her region. After living in the same residence for eight years paying £950 a month, Victoria has been informed that her rent will rise to £1,300 monthly. She acknowledges her landlord’s position but stresses that as a single mother of three relying on a single income, such an increase is overwhelming. “All my money goes on rent, bills and food,” she says, noting that the family hasn’t taken a holiday in years. While Scotland had introduced temporary rent controls during the pandemic, these protections expired in April 2025. New legislation is expected to allow ministers to designate specific rent control areas from 2027.
Changing demographics among renters are also notable. As housing costs climb, individuals tend to share accommodations later in life and continue renting longer. Data from Spareroom.com shows that renters under 25 now make up only 26% of the flat share market, down from 32% a decade ago. Meanwhile, those aged 45 and above comprise 16%—up from 10% in 2015—resulting in more multi-generational shared housing. Despite the challenges, Zoopla reports some easing in cost pressures for new tenancies. Rent growth has slowed to 1.9% annually, the lowest in four years, and housing availability has increased by 14% compared to last year, reducing competition for homes. Richard Donnell, Zoopla’s executive director, forecasts rent rises between 2% and 3% in 2026, noting that “cost-of-living pressures from rent are easing rather than intensifying.”
Nevertheless, landlords warn that rising expenses could push rents higher. Chris Norris, the National Residential Landlords’ Association’s chief policy officer, highlights ongoing cost pressures including adjustments to tenancy regulations under the Renters’ Rights Act in England. Many landlords of older properties must also invest in upgrades to improve energy efficiency, while facing upcoming hikes in income tax on rental earnings scheduled for 2027. These factors contribute to landlords adding 4% to 5% onto rents to “future-proof” them against these new obligations
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