Twice as many tenants are enquiring for each rental property compared to 2019, Rightmove data shows.
Each property now receives 11 enquiries, double the 6 we saw in 2019. In the peak months it gets even more competitive, as in the summer agents were receiving 19 enquiries per property.
This continued competition means rents are likely to rise again next year, though owing to tenant affordability issues they should only inflate by around 3%.
Tim Bannister, Rightmove’s property expert, said: “There are two competing factors influencing rental price changes right now. The ongoing imbalance between supply and demand is putting upwards pressure on prices.
“On the other hand, rent rises outpacing wage growth over the past 5 years has stretched affordability to extreme levels, and is showing in the increasing number of price reductions.
“Whilst at a top-level, we’ve seen overall improvements in the balance between supply and demand, agents tell us they are still extremely busy and having to manage high volumes of tenant enquiries.
“We’re therefore likely to see a more normal figure of around 3% growth in newly advertised rents next year.”
Average rents outside of London are now £1,339 per calendar month, 4.5% above this time last year, the slowest rate of annual rent growth since 2021, while rents are 2% above last year in London.
Rightmove predicts that average newly advertised rents will rise by 3% both outside and in London by the end of 2025.
Despite the strong tenant demand affordability seems to have reached a ceiling, as letting agents are having to reduce the price of more rental properties, with 26% of rental properties currently seeing a reduction in the advertised rental price before finding a tenant, compared with 23% last year.
In addition, wages have already failed to keep up with rent rises, stretching affordability. Average UK rents have risen by 40% over the last five years, while earnings have only risen by 28%.