The average letting agent has 13 homes for rent as the supply/demand imbalance narrows, Zoopla claims.
The figure is up from a low of 10 in 2023 but still 22% below the pre-pandemic average.
The data comes from Zoopla’s quarterly Rental Market Report.
Its latest figures show average UK rents for new lets are 3% higher over the past year, down from 7.4%
The average letting agent has 13 homes for rent as the supply/demand imbalance narrows, Zoopla claims.
The figure is up from a low of 10 in 2023 but still 22% below the pre-pandemic average.
The data comes from Zoopla’s quarterly Rental Market Report.
Its latest figures show average UK rents for new lets are 3% higher over the past year, down from 7.4% and the lowest level for 3.5 years.
There are still 12 renters chasing every home for rent – down 42% on 2022-24 levels but still higher than pre-pandemic levels
The portal said affordability constraints are slowing rental growth more than an increase in supply. The average annual cost of renting has increased by £3,000 to £15,400 per year.
Rents are growing fastest in more affordable cities such as Blackburn (10.1%), Stoke (9.8%) and Rochdale (9.5%), according to the research.
The portal is forecasting that rents for new lets will increase by 3% to 4% during 2025.
Commenting on the research, Greg Tsuman, director of lettings at Martyn Gerrard Estate Agents, said: “These figures match what we’re seeing on the ground with rental demand shifting to more affordable areas as the sharp rental increases led to many renters hitting their price ceiling and moving elsewhere.
“That said, it is likely that we could see another surge in rents in the second half of this year due to a confluence of factors. Some landlords are taking possession of their properties in advance of Section 21 evictions being abolished, a large number of buy-to-let properties are coming up for remortgage at higher rates and seasonal demand picks up around this time as well.
“These will all add upward pressure on rental prices, which, for landlords, means that the longer-term stability of buy-to-let investment remains intact.
“For tenants, it would be wise to act now to agree a new lease and secure their longer-term home. This will get ahead of these upcoming increases and the incoming legislative changes for renters may mean that they will be in a better position to negotiate with their landlord in the coming years.”
Angharad Trueman, president of ARLA Propertymark, added: “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 seven people for each available property.
“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.”
