Rental enquiries have remained high, with each property receiving an average of 11 enquiries, almost double the six seen in 2019, Rightmove has found.
This was despite an only 7% increase in available properties and a 19% drop in those looking to move this year.
Average rents outside London slowed their growth, with a monthly rent of £1,339, up 4.5% from last year, the slowest growth since 2021.
In London, rents increased by 2% compared to last year, reflecting continued demand despite limited housing availability.
Rightmove predicted a 3% rent increase both outside and in London by the end of 2025.
The ongoing lack of rental homes indicated further rent growth, but Rightmove suggested that tenants may be reaching an affordability ceiling.
Letting agents reduced prices for 26% of rental properties, compared with 23% last year.
Over the past five years, UK rents increased by 40%, while earnings only rose by 28%.
Tim Bannister, property expert at Rightmove, said: “There are two competing factors influencing rental price changes right now.
“The ongoing imbalance between supply and demand is putting upwards pressure on prices.
“On the other hand, rent rises outpacing wage growth over the past five years has stretched affordability to extreme levels, and is showing in the increasing number of price reductions.
Bannister added: “Whilst at a top-level, we’ve seen overall improvements in the balance between supply and demand, agents tell us they are still extremely busy and having to manage high volumes of tenant enquiries.
“We’re therefore likely to see a more normal figure of around 3% growth in newly advertised rents next year.”
Angharad Trueman, president of ARLA Propertymark and practicing letting agent, said: “The issue of demand far outstripping the number of homes available to rent is continuous.
“Landlords are also battling increasing costs including rising tax and mortgage costs, and many are finding it difficult to break even.
“The rental landscape continues to put pressure on investors and, ultimately, many are faced with the decision of exiting or considering exiting the market altogether.
“Without incentives for landlords to enter or remain in the market, rent prices and stock levels are likely to continue to worsen.”
