Autumn Rental Market Update: Rental growth accelerates as supply falls

Rental growth is gathering pace across the UK, with Yorkshire & the Humber among the regions experiencing the greatest pressure on available housing. Zoopla's latest Rental Market Report reveals what changing supply and demand means for landlords and tenants.

After a period of slower rental growth, the UK rental market is showing signs of renewed pressure. According to Zoopla's September 2026 Rental Market Report, average UK rents increased by 2.6% in the year to July, accelerating from 1.6% in February.

The average monthly rent now stands at £1,343. But behind the national figures, regional differences are becoming increasingly apparent. In Yorkshire & the Humber, rental growth has accelerated to 4%, while the number of homes available to rent has fallen significantly. For landlords and tenants across Sheffield, Chesterfield and Dronfield, these changing conditions highlight the importance of understanding the local rental market.

Fewer rental properties, growing competition

One of the most significant findings in Zoopla's latest report is the changing supply of rental properties.

After three years of improving availability, the number of homes on the UK rental market is beginning to fall again.

There are now 3% fewer properties available to rent nationally compared with a year ago, while the number of new homes entering the rental market has declined by 6%.

This reduction in supply is contributing to increased competition among tenants.

Zoopla reports an average of 5.3 enquiries per rental listing, 6% higher than last year and the highest level recorded in almost two years.

With fewer properties to choose from, tenants are facing renewed competition, particularly in areas where rental availability has declined most sharply.

Yorkshire & the Humber sees rental growth accelerate

The regional figures tell an even more interesting story.

Yorkshire & the Humber has experienced one of the largest increases in rental growth over the past year.

According to Zoopla, average rents across the region have increased by 4% annually, compared with growth of just 0.6% a year earlier.

At the same time, the number of homes available to rent has fallen by 12% - one of the most significant reductions reported nationally.

Average monthly rents across Yorkshire & the Humber now stand at £882.

The figures demonstrate the close relationship between rental supply and rental values. When fewer homes are available, competition increases, placing upward pressure on rents.

However, rental performance can vary considerably between towns, neighbourhoods and property types, making local market knowledge essential when assessing achievable rents.

Sheffield rental prices continue to rise

Sheffield is also recording stronger rental growth than the UK average.

Zoopla's latest figures show that average monthly rents in Sheffield have reached £878, representing annual growth of 3.1%.

That's a notable acceleration from the 0.6% annual growth recorded a year earlier.

Sheffield continues to attract a broad range of tenants, from young professionals and graduates to families and people relocating for employment.

Its universities, employment opportunities and diverse neighbourhoods support demand across different parts of the rental market.

For landlords, understanding which properties appeal to which tenants - and how rental values differ across the city - remains essential to achieving the best possible return.

Why is rental supply falling?

Several factors are contributing to the changing rental market.

Zoopla highlights continued low levels of new investment in rental housing, with landlords facing higher operating costs and an increasingly complex regulatory environment.

Higher mortgage rates are also influencing demand.

For some aspiring first-time buyers, increased borrowing costs are making homeownership less accessible, meaning they are remaining in rented accommodation for longer.

This can reduce the number of rental properties becoming available as existing tenants delay their move onto the property ladder.

Combined with limited new investment, these factors are placing renewed pressure on the supply of homes available to rent.

What does this mean for landlords?

With rental growth accelerating and available stock declining, current conditions may present opportunities for landlords.

However, a stronger rental market doesn't automatically mean that increasing the asking rent will deliver the best result.

Setting an appropriate rental price, presenting a property well and selecting suitable tenants remain central to protecting a property's long-term performance.

An unrealistic asking rent can still lead to unnecessary void periods, while poor property management, maintenance issues or non-compliance can affect both rental income and the value of an investment.

For landlords, the focus should be on achieving a sustainable return, maintaining occupancy and protecting the condition of their property.

At Redbrik, our Lettings & Asset Management team combines local rental market knowledge with proactive property management, helping landlords navigate changing market conditions and make informed decisions about their investments.

What's next for the rental market?

Zoopla expects rental growth to continue accelerating during the remainder of 2026.

Based on current trends, it forecasts UK annual rental inflation reaching between 4% and 5% by December, bringing rental growth more closely into line with average earnings growth.

However, the report also highlights how sensitive the rental market remains to relatively small changes in available housing.

Increasing the supply of rental properties will be important in improving choice for tenants and supporting a more balanced market over the longer term.

For landlords, keeping up to date with changing legislation, operating costs and local rental demand will remain just as important as monitoring headline rental growth.

Make more of your property investment with Redbrik

Whether you own a single buy-to-let property or manage a larger portfolio, understanding how your investment is performing in today's market is essential.

Our dedicated Lettings & Asset Management team provides expert advice on rental valuations, tenant demand, compliance and long-term investment performance across Sheffield, Chesterfield and Dronfield.

Want to know what your property could achieve in today's rental market?

Book an up-to-date rental valuation or a review of your existing investment →

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