The average price being asked for a home to rent outside London has fallen for the first time since before the coronavirus pandemic, according to Rightmove.
Excluding London, the average advertised rent in Britain fell in the fourth quarter of 2024 compared with the previous quarter, dropping by 0.2% to £1,341 per calendar month.
It was the first quarterly decrease recorded since 2019, and while it equates to a drop of just £3 in newly advertised monthly rents, it brings an end to many months of prices reaching new record highs, Rightmove said.
Rents are 4.7% higher than a year earlier, but this is the slowest rate of growth since 2021, the website said.
Average advertised rents in London continued to rise, reaching a 13th quarterly record in a row of £2,695 per calendar month.
But Rightmove said the quarterly increase in monthly asking rents in London was relatively small, at 0.1% or £1.
Average rents in London were 2.4% higher than a year ago – the lowest increase since 2021.
A rising supply of rental homes to choose from was improving the balance of supply and demand, the website said, although there were still 10 applications being made typically per rental property.
Rightmove said that looking across Britain, rental supply had increased the most in the north-east of England, and least in Wales.
Some rental sector demand may have moved across to the house sales market, Rightmove suggested, helped by some mortgage rate reductions and rising wages.
It said agents were also reporting that some tenants were choosing to stay put rather than move due to the costs.
Rightmove’s property expert Colleen Babcock said: “A first quarterly drop in rents is the culmination of several months of improvement in the balance between supply and demand.
“While new tenants are still paying more than they were at this time last year, the pace of growth continues to slow. However, though this is the big picture of market activity, agents on the ground still tell us that the market is very hot, and some areas have improved more than others when it comes to the supply and demand balance.
“Our own data shows that the average rental property is still receiving 10 applications per property, which is lower than the peak, but still double the pre-pandemic norm.”
John Baybut, managing director at Berkeley Shaw Real Estate in Liverpool, said: “Demand is generally still pretty strong and the market is still busier than before the pandemic. Tenants are paying very high rents, so with more supply on the market now, some are being more ‘choosy’.
“Some have also decided the costs of moving are too expensive and have decided to stay put. Landlords have to be careful to price accurately right now, despite having their own affordability pressures with high mortgage rates. Landlords need to work closely with experts to set the right price and keep their home occupied in the current market, reducing the risk of void periods.”
Alex Bloxham, a partner and head of residential lettings at Bidwells, said: “These figures suggest landlords are continuing to invest in their buy-to-let portfolios, while more tenants are choosing to stay put, likely due to continued macroeconomic uncertainty and the up-front costs involved in relocating.”
