The average number of rental enquiries remains at nearly double the level it was before the pandemic in 2019, it has been revealed.
The latest data from Rightmove found that each available rental property receives an average of 11 enquiries, almost double the six at this time in 2019.
In spite of winter typically being a quieter time for the rental market, agents were receiving less than double this number earlier this year in the summer – at 19 enquiries per property.
The property website said the figures remain high despite improvements in the balance of supply and demand this year.
The number of available properties has improved by 7% compared with this time last year, while the number of prospective tenants looking to move has dropped by 19% compared to last year.
This improvement in the balance of supply and demand has, however, contributed to a slowdown in the pace of rent growth compared with last year.
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Average rental prices
The latest snapshot of the market shows that average rents outside of London are now £1,339 per calendar month.
It is 4.5% above this time last year, and the slowest rate of annual rent growth since 2021, while rents are 2% above last year in London.
Rightmove predicts that average newly advertised rents will rise by 3% outside of London and 3% in London by the end of 2025.
It said the ongoing lack of available rental homes compared with the number of people looking to rent indicates further rent growth next year.
However, it warned that there are signs that tenants are hitting a so-called ‘affordability ceiling‘ and would not be able to meet significant rent rises.
Lettings agents are having to reduce the price of more rental properties, with 26% of rental properties currently seeing a reduction in the advertised rental price before finding a tenant, compared with 23% last year.
In addition, wages have already failed to keep up with rent rises, stretching affordability.
Average UK rents have risen by 40% in the last five years, while earnings have risen by 28%.
Tim Bannister, Rightmove’s property expert, said: “There are two competing factors influencing rental price changes right now.
“The ongoing imbalance between supply and demand is putting upwards pressure on prices. On the other hand, rent rises outpacing wage growth over the past five years has stretched affordability to extreme levels, and is showing in the increasing number of price reductions.”
He added: “While at a top level, we’ve seen overall improvements in the balance between supply and demand, agents tell us they are still extremely busy and having to manage high volumes of tenant enquiries.
“We’re therefore likely to see a more normal figure of around 3% growth in newly advertised rents next year.”
