Several major UK cities experienced rent declines in the first half of 2024, including Nottingham (-0.6%), London (-0.4%), Brighton (-0.2%), and Glasgow (-0.2%). Zoopla’s rental index, which tracks rental growth across 64 cities, indicates that 75% of these cities saw slower rental growth.

While some areas are seeing rent adjustments after an overshoot, rents continue to rise at above-average rates in more affordable markets near large cities. For example, Rochdale (+6.9%), Doncaster (+5%), Southend (+5%), Sunderland (+4.4%), and Telford (+4.3%) all recorded significant rental growth in the first half of 2024.

A similar trend is observed across London, with inner boroughs like Tower Hamlets, Newham, and Greenwich seeing rent declines. More than one-third of London boroughs (12 out of 33) recorded falling rents in the first half of 2024, while outer London areas showed above-average rental growth.

Zoopla also noted that the supply of rental homes is gradually increasing, with estate agents reporting 17% more properties available compared to a year ago. However, the average letting agent still has one-third fewer homes to rent compared to pre-pandemic levels (2017-2019).

The modest improvement in supply is attributed to two factors: lower mortgage rates, which have made it easier for first-time buyers to purchase homes, and an increase in new homes being sold to corporate landlords.