Only one place in the UK was cheaper than renting in Northern Ireland with letting in the city slightly more expensive
Competition for rental homes has fallen to its lowest level for the month of February in six years, according to a property website.
Zoopla said the average number of inquiries per property was 4.8 in February, down from 6.5 last year, meaning fewer renters typically competing for each home.
It marks the lowest level in the month of February since February 2020, when there were around 4.2 inquiries per rental home.
Zoopla said this was “clear evidence” of the rental market becoming more balanced after a peak in competition seen in 2022 and 2023, with improved mortgage conditions having helped more renters to buy their first home.
UK rents for new lets increased by 1.9% over the year to January, reaching £1,319 on average across the UK the website said. In Northern Ireland average rent was £831, up by 8.4%. In Belfast rent averaged at £847, up by 7.6% making it the most cheapest place to rent in the UK regions surveyed – apart from the North East of England at £770, a rise of 4.2%.
The report said: “Rental growth remains stronger in more affordable northern markets where rents are lower. Cities such as Liverpool, Newcastle and Glasgow are still recording stronger increases of 3% to 4.6%.”
Zoopla said it expected rents to increase by around 2% to 3% on average across the UK during 2026.
Its rental market index is based on asking rents and adjusted to reflect achieved rents.
Richard Donnell, executive director at Zoopla, said: “Market conditions for renters are the best they have been for six years.
“The rental market is moving back towards balance as demand cools and more homes become available to rent.
“Renters are facing less competition for homes and slower rent increases than in recent years. Localised changes in demand and supply are resulting in rents falling in some cities but this will be only a short-lived trend.
“However, supply remains well below pre-pandemic levels, which means increasing the number of rental homes remains key to improving affordability for the UK renters over the long-term.”
Tom Bill, head of UK residential research at Knight Frank, said: “More balance has returned across the UK but in the capital, where renting is twice as common, there is still a notable lack of supply in many areas that is pushing rents higher.”
Meanwhile, calculations from property firm Savills indicated that the value of the UK’s private rented sector fell by £48 billion in 2025, while the value of owner-occupied housing stock increased by £185billion.
The value of the private rented sector has shrunk for three years in a row, according to Savills’ calculations, with the value of homes falling by a total of £79 billion since 2022, as increased house prices have failed to offset the loss of stock.
Lucian Cook, head of residential research at Savills, said: “Over the past 25 years, we’ve grown accustomed to a story of the private rented sector expanding at the expense of people’s ability to get onto the housing ladder.
“But while deep-seated housing challenges remain, lighter regulation in the mortgage market and tighter oversight of the private rented sector are gradually beginning to shift that narrative.
“Changes in tenancy legislation, higher operating costs and increased mortgage rates have prompted many private landlords to reassess their portfolios.
“Larger landlords, better equipped to absorb added costs and requirements, have taken on some of this stock, contributing to a more professionalised PRS (private rented sector). But others have been sold to owner-occupiers, reducing the sector’s overall size.”
Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “We currently have a rental landscape where demand for properties continues to outstrip available stock.
“When looking at the latest data available, Propertymark members report a near 7% increase in the number of landlords who have chosen to sell their properties year-on-year.”
Here are average monthly rents in regions, nations and a selection of major cities in January and the annual change, according to Zoopla:
- East Midlands, £925, 1.4%
- East of England, £1,251, 1.9%
- London, £2,187, 1.7%
- North East, £770, 4.2%
- North West, £958, 3.0%
- Northern Ireland, £831, 8.4%
- Scotland, £878, 1.8%
- South East, £1,397, 1.9%
- South West, £1,147, 2.6%
- Wales, £941, 2.3%
- West Midlands, £972, 0.3%
- Yorkshire and the Humber, £866, 1.5%
- Belfast, £847, 7.6%
- Birmingham, £998, minus 0.7%
- Bristol, £1,431, 0.8%
- Cardiff, £1,193, 2.6%
- Edinburgh, £1,323, 2.0%
- Glasgow, £1,030, 3.7%
- Leeds, £1,024, 0.8%
- Liverpool, £915, 4.6%
- Manchester, £1,167, 1.6%
- Nottingham, £992, minus 0.8%
- Sheffield, £861, 0.9%
- Southampton, £1,194, 2.1%
For all the latest news, visit the Belfast Live homepage here and sign up to our daily newsletter here.