Average annual rent on a newly let property is £3,240 more than at the end of the pandemic, says Zoopla.

In an analysis prepared for the BBC the portal claims rents began to soar in 2021 because of high demand from tenants after lockdowns were lifted and limited numbers of available properties.

The annual cost of renting has gone up by 27% in those three years, compared with a 19% rise in average earnings.

However, the rate at which rents are rising is now the slowest for three years.

But those tenants with the least to spend, in the cheapest areas, may now be facing the sharpest rent rises.

“With more renters than there are homes to rent, people are seeking out the best value for money” Richard Donnell – executive director of research at Zoopla – tells the BBC.

“Within cities, rents are typically rising faster at the lower end of the market.”

On average, rents for newly let properties were now 3.9% higher than a year ago but with pockets of fast-rising rents remained. Annual rental inflation stood at 10.5% in Northern Ireland compared with 1.3% in London.

In towns and cities, average rents are rising fastest in Rochdale (up 11.9% in a year) and Blackburn (up 10%), and Birkenhead (up 9%). Zoopla says renters are seeking areas in and around major cities. 

The property portal has forecast rents rising at an average rate of 4% next year, with demand still outstripping supply.

The increase would come, in part, as a result of reduced supply as landlords feel obliged to sell because of higher taxes and sharply reduced profits.

The National Residential Landlords Association (NRLA) says 31% of landlords were planning to sell properties they rent out in the next two years.

“What tenants need is greater choice. That means encouraging and supporting the vast majority of responsible landlords to stay and continue to provide decent quality housing” according to Ben Beadle, chief executive of the NRLA.