UK renters are benefitting from more favourable market conditions, as competition has fallen to a six-year low, Zoopla research shows.
As a result, the cost of new lets increased by just over 1.9% in the past year.
The market has been boosted by more supply, as the number of homes available for rent has increased by 11% year-on-year.
Richard Donnell, executive director at Zoopla, said: “Market conditions for renters are the best they have been for six years.
“The rental market is moving back towards balance as demand cools and more homes become available to rent. Renters are facing less competition for homes and slower rent increases than in recent years. Localised changes in demand and supply are resulting in rents falling in some cities but this will be only a short lived trend.
“The rental market is moving back towards balance as demand cools and more homes become available to rent. Renters are facing less competition for homes and slower rent increases than in recent years.
“However, supply remains well below pre-pandemic levels, which means increasing the number of rental homes remains key to improving affordability for the UK renters over the long term.”
Less competition for rented homes has slowed rental growth for new lets to 1.9% over the last year, down from 2.9% a year ago.
The annual rent for the average property outside of London is now 33.5% of the gross annual income for a single person, down from 35% in 2023.
Tom Bill, head of UK residential research at Knight Frank, said: “More balance has returned across the UK but in the capital, where renting is twice as common, there is still a notable lack of supply in many areas that is pushing rents higher.
“Some landlords have already sold due to extra red tape and taxes while others are waiting to see how disruptive the Renters Rights Act is when it comes into force in May.
“With tougher green regulations also coming down the line, further upwards pressure on rents cannot be ruled out.”