The total number of available rental homes dropped below year-ago levels for the first time since 2022, now running 1% lower than 12 months prior. Rightmove attributed the decline mainly to a fall in newly listed properties rather than faster absorption of existing stock.
Despite the supply dip, the balance between supply and demand appears to be stabilising. The average rental home is now receiving 10 enquiries, down from 11 a year ago and well below the 2022 peak of 22, though still above the pre-pandemic average of five.
Regional disparities remain pronounced. The North East and North West each recorded annual rent growth of 4.1%, compared with 1.5% in the East Midlands and East of England. In terms of demand pressure, the North West has the largest mismatch between supply and demand, averaging 14 enquiries per property, while London — despite seeing the sharpest supply contraction — has the tightest balance at eight enquiries per rental home.
This quarter marks the first analysis period following the introduction of the Renters’ Rights Act in May. Early data suggests supply, demand, and pricing trends remain steady and broadly in line with seasonal norms.
Rightmove’s daily buy-to-let mortgage tracker shows borrowing costs for landlords have begun to ease, with the average two-year fixed buy-to-let rate carrying no fee falling to 5.55% from 5.67% the previous month.