The average advertised rent for new properties coming onto on the rental market hit another new record outside of London of £1,280pm, according to Rightmove.

Despite a 16th consecutive record in newly advertised rental prices, this quarter’s rise of just £2 is the smallest quarterly increase since before the pandemic. Advertised rents outside of London are now 9.2% higher than last year, which whilst still a significant annual increase, is the slowest annual rise since 2021.

It’s the same story in the capital, with rents in London reaching a new record of £2,631. However, this is just £4 higher than the previous quarter. Compared on an annual basis, rents are 6% higher than a year ago, compared to a 12% annual rise this time last year. This is the first time that annual rent rises in London have been in single digits since 2021.

The early signs indicate that the annual pace of rent growth will slow further this year, and Rightmove predicts rents to be 5% higher outside of London by the end of 2024, and 3% higher at the end of 2024
in London.

One of the main contributors to the slowing of rent rises, and the anticipation of a further slowdown in 2024, is an improvement in the balance of supply and demand in the rental market.