The property portal noted that this is down by a significant 42% on 2022-24 levels, but still higher than pre-pandemic, as demand continues to outstrip supply.
Annual rent inflation for new lets is running at lowest level for 3.5 years. Rents have increased by 3% over the last year, down from 7.4% a year earlier.
Zoopla added that the supply/demand balance is narrowing, with 11% more homes for rent and rental demand 17% lower than a year ago.
Rent rises impacted by affordability
Rent rises are being constrained by affordability is a growing constraint on rent rises, with the annual cost of UK rents increasing by £3,000 a year to £15,400.
However, rents are rising faster in more affordable cities, including Newcastle, which has seen 6.2% annual rental inflation.
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Richard Donnell, executive director at Zoopla, said: “Rental inflation has slowed, which will be welcome news to renters but there are still 12 people chasing every home for rent.
“Growing supply is essential to support those on lower incomes and
policy reforms for the rental market need to minimise the impact on supply.”
Angharad Trueman, president of ARLA Propertymark, agreed: “The issue of demand far outstripping the number of homes available to rent is continuous.
“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.”
