Average advertised rents have reached another new record of £1,316pm outside of London, and despite the pace of rent growth easing, rents are now 7% sthan last year, according to Rightmove.

Whilst the pace of rent growth has eased from its peak of 12% two years ago, it is still much higher than the more normal level of around 2% per year seen before the pandemic.

In London, average rents are now £2,652pm and Rightmove’s analysis shows that approximately 120,000 more rental properties are needed nationally to bring rent growth back to more normal levels of around 2% per year, based on current levels of demand.

Scotland has the biggest imbalance between supply and demand, and London has the smallest. London rents are now 4% above last year, which is the joint smallest increase of all regions having been the highest increase in the past two years, as the balance of supply and demand has improved in the capital.

Rightmove is calling on the government to accelerate housebuilding, and incentivise landlords to invest in more homes for tenants, to improve the supply and demand imbalance in the rental market and stabilise yearly rent growth.