Average rents for new UK tenancies rose 2.6% in July from a year earlier, and Zoopla expects annual increases in privately rented homes to accelerate to 4% or 5% by the end of the year, according to BBC. The property website said the market has been squeezed by fewer homes available to rent, with 3% fewer listings than a year ago, while each listing now attracts more than five enquiries on average. Zoopla said higher mortgage rates are also discouraging some first-time buyers, adding to competition for rental homes in some areas. The report said the Renters' Rights Act came into force in England at the start of May, but new investment in rental homes remains muted because of higher costs and more regulation.