The average advertised rent of properties coming to market outside of London fell for the first time since pre-pandemic 2019 in Q4 2024, according to Rightmove.
Prices fell by 0.2% to £1,341 per calendar month.
While rents are still 4.7% higher than this time last year, this still represents the slowest rate of growth since 2021.
Meanwhile average advertised rents in London have continued to rise, reaching the 13th consecutive quarterly record of £2,695 pcm, however this growth increased by just 0.1% in Q4 2024.
Rental market supply has also grown, with the number of available rental properties now 13% higher than the same time last year, while over the same period, the number of tenants looking to move has declined, with enquiries down by 16%.
Rightmove claimed that a combination of factors may have led to a change in the supply and demand dynamics, including demand transitioning to the sales market, as well as tenants choosing to stay put rather than move due to costs. Other factors included landlords deciding to exit the market as well as some, perhaps larger, landlords continuing to invest.
Despite the changes in supply and demand, the average number of applications per rental property remains at 10.
Commenting on the latest data, Colleen Babcock, property expert at Rightmove, 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."
