Landlords are increasingly dropping the price of their advertised rents and receiving fewer enquiries per property as rental growth stalls amid lower tenant demand.
The advertised rent of homes outside London remained flat at an average of £1,370 per month, marking the first time since 2017 that there has been no rise between the last and first quarters of the year.
Inside London, asking rents rose by 0.7% in Q1 to £2,736 per month, according to Rightmove.
Despite the 0% growth outside of London quarter-on-quarter, average rents are still 1.6% higher than this time last year. This, however, is the lowest this figure has been since 2018.
Around 26% of rental listings are now reduced in price while advertised – the highest proportion recorded since Rightmove began tracking this metric in 2012.
Meanwhile, on average, eight enquiries are being received per property – down from 11 a year ago and 29 at the 2022 peak.
However, enquiry levels remain higher than the average of five recorded before the pandemic.
The supply of available homes to rent is now 3% higher than a year ago, and at the highest level for this time of year since 2021.
Colleen Babcock, Rightmove’s property expert, said: “Rents holding steady this quarter reflects how affordability remains stretched, but also how supply and demand is more balanced.
“With more homes available to rent and less competition between tenants, landlords are needing to position rents correctly for the current market to secure a tenant.
“As market conditions rebalance, homes are taking longer to let. The market is more price-sensitive, with landlords needing to be realistic from the outset to secure a tenant and reduce the risk of void periods.”
Ahead of the Renters’ Rights Act coming into force on 1 May, Rightmove said its data does not suggest a single or immediate reaction from landlords, but behaviour appears more cautious and considered.
“Many landlords are focusing on long-term tenancies, pricing and avoiding void periods in a more balanced market,” added Babcock.
Adam Jennings, head of residential at Chestertons, said: “With the Renters’ Rights Act coming into force from 1 May, there has understandably been some uncertainty among landlords. However, the strength of demand we saw in late March has provided reassurance, with many landlords continuing to see competitive levels of interest and strong rental values.
“In parts of the prime market, we’re also seeing demand supported by international relocations, including some movement from the Middle East, which is adding to overall activity. Overall, while the legislative backdrop is evolving, the lettings market has remained active, with momentum building into the end of the quarter.”