Gloomy forecast for tenants as rent rises set to speed up

It said that rent rises were being seen across the UK, but the situation still differed depending where renters were looking.

"In less expensive areas, renters have more capacity to absorb rent rises before hitting an affordability ceiling, whereas in the most expensive areas, rents are already stretching what renters can pay, capping how much further rents can increase," the report said.

It predicted a further acceleration in rent rises to 4% or 5% by the end of the year, although that still roughly matched the average annual rise in workers' earnings.

New investment in homes to rent by landlords was "still muted as a result of higher costs and more regulation", Zoopla said.

Nathan Emerson, chief executive at Propertymark, which represents lettings agents, said the report underlined the need for more high-quality rental homes.

"A sustainable private rented sector requires the right conditions for responsible landlords to invest for the long term," he said.

"Increasing supply must remain a priority if we are to give tenants greater choice, improve affordability and create a more stable rental market."