Property investors are facing lower rental growth rates, with UK rents increasing by three percent annually, the lowest in three and a half years, due to worsening affordability rather than increased supply. Demand for rentals has cooled in all regions, except the North East and Northern Ireland where rents are rising by 6.3% and 9% respectively, with rents in more affordable cities like Blackburn, Stoke, and Rochdale experiencing the fastest growth. Despite this, Zoopla expects rents to rise by three to four percent in 2025, driven by demand exceeding supply and potential impacts from rental reforms and policy changes.
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