Rents have risen to a brand new report of £1,280 a month, though the tempo of development has slowed.
In keeping with Rightmove, rents have elevated by simply 0.2 per cent within the final quarter, the smallest bounce since 2019.
Regardless of this, marketed rents are nonetheless 9.2 per cent greater than final yr.
London rents additionally hit a brand new report stage of £2,631 a month, rising by 0.2 per cent this quarter.
Rightmove predicts that common rents will rise by 5 per cent outdoors of London in 2024 and three per cent in London.
The property portal famous that the development of bettering provide and decrease tenant demand is continuous.
The variety of tenants sending enquiries to letting brokers to maneuver is 13 per cent decrease than the identical interval final yr, for instance.
However provide is up, with the variety of new rental properties coming onto the market seven per cent greater than final yr.
Brokers are nonetheless receiving 11 enquiries for every rental property on common, down from 14 final yr, however method up on the 4 recorded in 2019.
There are indicators that extra tenants are hitting an ‘affordability ceiling’, with almost 1 / 4 (23 per cent) of rental properties needing a discount in marketed hire, in contrast with 16 per cent presently final yr.
That is additional contributing to slowing hire rises, stated Rightmove.
The portal’s director of property science, Tim Bannister, stated: “The development of hire development progressively slowing continues, with an enchancment within the provide and demand of rental properties having a giant contribution to that.
“We are able to’t maintain seeing double digit hire rises yearly as tenant affordability merely can not sustain, and 2024 is the yr we expect there will probably be a a lot smaller improve in marketed rents of 5 per cent outdoors of London, and thee per cent within the capital.”
Hayley Brinn, director at The Complete Letting Service, added: “The market remains to be actually busy, and the excessive variety of candidates per property is being exacerbated by some landlords leaving the market.
“Costs seem like levelling out now as extra alternative turns into accessible, with tenants changing into extra value delicate, or simply reaching the utmost of what they will afford to pay.”