The average advertised rental price for homes outside London has remained the same from the fourth to the first quarter for the first time since 2017 at £1,370 per month.
In London, rents rose 0.7% from the final quarter of last year and the first quarter of this year, to £2,736 per month, Rightmove’s latest index shows.
Average rents outside London are still 1.6% higher than this time last year and within the capital they have risen 1.4% over the same period.
The average rental property now receives eight applications, compared to 11 a year ago and 29 at the 2022 peak.
More than a quarter of rental properties have had their prices reduced, the highest percentage at this time of year since Rightmove started recording this measure in 2012.
Rightmove says there are currently no major signs on a national scale of changes in market dynamics ahead of the Renters’ Rights Act coming into force on 1 May.
The number of available rental properties is now 3% higher than a year ago and supply is at the highest level for this time of year since 2021.
However, Right-wing movement points out that despite improvements in rental housing availability, levels are still below longer-term standards.
Like home borrowers, landlords are facing a spike in mortgage costs.
The average two-year mortgage rate for a homeowner with a 25% down payment is now 5.79%, up 93 basis points from 4.86% before the outbreak of war in Iran.
Rightmove property expert Colleen Babcock says: “Rents remaining stable this quarter reflect how affordability remains under pressure, but also how supply and demand are more balanced.
“With more properties available for rent and less competition between tenants, landlords must position rental prices correctly for the current market to secure a tenant.
“As market conditions return to equilibrium, it will take longer for homes to be rented.
“The market is more price sensitive, with landlords having to be realistic from the outset to secure a tenant and reduce the risk of vacancy.
“Around 26% of rental properties are now reduced in price while advertised, the highest percentage since Rightmove started tracking this statistic in 2012.
“Before the Renters’ Rights Act takes effect, the data does not indicate any single or immediate response from landlords.
“Instead, behavior appears to be more cautious and measured, with many focusing on long-term leases, prices and avoiding vacancy periods in a more balanced market.
“It’s still early days, but the most immediate shift as a result of the Iran war has been some significant increases in financing costs for landlords, which could filter into the market at a later stage.”
Chesterton’s Head of Residential, Adam Jennings, added: “In the first quarter we have seen a clear upturn in rental activity, particularly towards the end of March, with a noticeable increase in viewings and agreed lettings compared to earlier in the quarter.
“With the Tenancy Rights Act coming into force on 1 May, there has understandably been some uncertainty among landlords.
“However, the strong demand we saw in late March has provided reassurance, with many landlords continuing to see competitive interest levels and strong rental values.”