The average advertised rent of properties coming to market outside of London has fallen this quarter for the first time since 2019, Rightmove’s rental tracker reveals.
Rightmove data found that rental prices have decreased by 0.2% to £1,341 per calendar month since the last quarter.
Rents are still 4.7% higher than this time last year, which is the slowest rate of growth since 2021.
Meanwhile, average advertised rents in London went up by 0.1%, reaching a thirteenth consecutive quarterly record of £2,695 pcm.
Rightmove suggests that one of the drivers of slowing rent growth has been the gradual improvement in the available supply of rental properties across Great Britain, compared with recent supply-constrained years.
Supply in the rental market continues to increase, with the number of available rental properties now 13% higher than at the same time last year.
In addition, the number of prospective tenants looking to move has also dropped by 16% compared to last year.
However, the average number of applications per rental property is still in double digits at 10.
The number of available properties to rent has improved the most in the North East with a 30% increase, and least in Wales with just a 3% increase, highlighting regional differences in supply improvements.
Elsewhere. Rightmove suggests that there are currently no major signs of the upcoming Renters’ Rights Bill affecting rental market dynamics.
However, it says more broadly there is still evidence that some landlords are choosing to leave the market.
The number of new properties coming into the rental market is stable compared with last year. On average, 15% of homes for sale were previously for rent in 2024, compared with 13% in 2023.
StepChange chief client officer Richard Lane says: “While the overall rate of inflation has fallen closer to the Bank of England’s target, private rental prices have continued to grow at a stubbornly high rate in recent months.”
“A slight fall in rent prices is positive, but we know that the unaffordable cost of renting remains a huge financial burden on households, making it difficult for people to cover other bills, pay off debts or pay into their savings.”
“We’re pleased to see the Renters Rights Bill progressing through Parliament, which will end section 21 ‘no fault’ evictions – a long overdue piece of legislation. However, we’ve long called for strengthened protections for private renters facing financial hardship.”
“Our research shows that a significant proportion of private renters are having to rely on credit just to cover their rent, which is unsustainable and will only trap people in a cycle of problem debt.”
Bidwells partner and head of residential lettings Alex Bloxham adds: “We’re seeing a cooling of what has been a ferociously hot rental market over the last year, where tenants have endured intense competition and consistent rental inflation.”
“These figures suggest landlords are continuing to invest in their buy-to-let portfolios while more tenants are choosing to stay put, likely due to continued macroeconomic uncertainty and the upfront costs involved in relocating.”
“The high-rate environment and regulatory changes have had a dampening effect on supply, with fewer new landlords entering the housing market.”
“All the while, demand-side drivers including expensive for-sale housing, high mortgage rates, and reurbanisation have remained prominent demand-side drivers for rental housing, with these dynamics combining to produce a stark supply-demand imbalance.”
“This mismatch will continue to be a defining feature in the market, but the steady improvement we’re seeing will put downward pressure on rents and represents positive news for renters.”
