Gloomy forecast for tenants as rent rises set to speed up

The UK's rental market is expected to experience a further acceleration in rent rises by the end of the year, with Zoopla forecasting an average annual increase of 4% or 5%. This comes after a three-year slowdown in rent growth.

According to property website Zoopla, the cost of renting is expected to rise by 2. 6% in July compared to a year earlier.

The rising cost of renting has been driven by increased investment in homes for rent and a shortage of available properties.

The cost of renting is expected to rise by 4% or 5% a year by December, according to property website Zoopla.

The rising cost of renting a home in the UK has accelerated after a three-year slowdown - with tenants told to expect more pain to come.

Average rental costs for new tenancies were up 2. 6% in July compared with a year earlier, according to property website Zoopla.

That remains lower than the rate of rising prices in general, but the property portal has forecast annual rent rises among privately rented homes will hit 4% or 5% by the end of the year.

It said there were fewer homes available to rent and - with potential first-time buyers put off by higher mortgage rates - competition for rental places in some areas was more intense.