David Fell, lead analyst at Hamptons, said: “The pace of rental growth has returned to pre-pandemic trends, with rents consistently rising at a low, single-digit pace, the norm for most years before 2020.
“This means that homes coming onto the market that aren’t priced competitively from day one are taking longer to find tenants.
“However, the number of lets being agreed in England stands below the level of last year, most notably in London.
“Landlords are increasingly cautious about tenant selection since the Renters’ Rights Act became law, taking more time to weigh up their options.
“Meanwhile, falling mortgage rates in recent weeks have given landlords some breathing room, enticing those whose fixed deals are coming to an end to relet rather than sell up, preventing a more severe supply crunch.
“For tenants thinking about buying, these lower rates are pushing monthly mortgage payments below the level of the rent they are paying.
“This exit of longer-term renters and the strength of the first-time buyer market should help ease persistent rental demand.”
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