Rents hit another record high, with tenants now paying £400 more per month than five years ago, according to analysis from Rightmove.
The average advertised rent for new properties outside London rose 1.2% this quarter to £1,365 per calendar month.
The annual growth in rent was 3.9%, the slowest since 2020.
London rents also reached a new record, rising 0.5% this quarter to £2,712 per month.
This is the 15th consecutive record for the capital.
Monthly rent for new tenants is now £417 higher than in 2020, a 44% increase, which has outpaced average earnings that have risen 36% over the same period.
Additionally, data showed that available rental properties have increased by 15% compared to last year, led by the North East at 33%.
However, supply is still 29% below 2019 levels.
Tenant demand eased by 10% compared to last year.
The average number of enquiries per rental property is now 11, down from 16 last year but up from seven in 2019.
Buy-to-let (BTL) lending data from UK Finance showed 17% more loans for BTL properties so far this year compared to last year.
New rental home purchases increased by 28%.
Research also showed that homes took longer to let, with the average time to be marked let agreed on Rightmove now 25 days, up from 21 days last year.
Nearly a quarter of rental homes, 24%, have their advertised price reduced during marketing, the highest since 2017.
Colleen Babcock, property expert at Rightmove, said: “Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants.
“Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants.
“The good news is that the latest industry snapshot suggests more investors are taking out buy-to-let loans compared with last year, which should help to bring even more homes to the rental market.”
Megan Eighteen, president of ARLA Propertymark, said: “Many landlords within the private rental market are grappling with substantial hikes in their overall costs, including increased taxes, unfavourable mortgage rates, and ongoing regulatory challenges.
“These factors are making property investment less appealing and potentially riskier.
“Consequently, this is exacerbating the disparity between supply and demand for housing, and we’ve seen a significant impact on rental prices, which vary regionally.”
Eighteen added: “It is clear to see that many landlords may now be struggling to justify their current or future property investments, especially if costs and the number of regulations continue to rise.
“It is crucial for all governments across the UK to recognise the vital role the private rented sector plays in accommodating the nation’s housing needs and provide urgent support to enhance the supply of homes while effectively lowering rent levels in the long term.”
