There were 11% more homes available for rent in Q1, with rental demand down 17% from last year, according to Zoopla’s Rental Market Report.
Zoopla’s report found that currently, 12 renters are chasing each available rental home, a 42% decrease from the 2022-24 levels, but still higher than pre-pandemic.
Affordability was also a growing concern, with the annual cost of UK rents over £3,000 more, totalling £15,400.
Rental inflation in London increased by 1.1%, with the annual rate of rent inflation for new lets now at its lowest for three and a half years.
Rents rose by 3% over the last year, compared to a 7.4% increase the year prior.
Richard Donnell, executive director at Zoopla, said: “Rental inflation has slowed, which will be welcome news to renters but there are still 12 people chasing every home for rent.
“Growing supply is essential to support those on lower incomes and policy reforms for the rental market need to minimise the impact on supply.”
Angharad Trueman, president of ARLA Propertymark, said: “The issue of demand far outstripping the number of homes available to rent is continuous.
“Month on month, Propertymark letting member agents report a lack of supply compared to the ever-growing number of people looking to rent a home, most recently stating that the average number of applicants per member branch is around 7 people for each available property.”
Trueman added: “Landlords are battling ongoing increases in their overheads including rising taxes, mortgage rates and continuous challenges of ever-complex regulation, with many finding it difficult to break even on costs.
“The rental landscape continues to put pressure on current and future investors and, ultimately, without support for landlords to enter in the future or remain in the market, rent prices and stock levels are likely to continue to worsen.”
