Rental market conditions are the weakest for 5 years reports Zoopla. Letting agents are getting 24% fewer enquiries to rent homes than a year ago. This is the lowest level for the month of August since 2020 as migration levels fall and mortgage availability improves for first-time buyers. The number of homes for rent is steadily rising, at almost a fifth higher than a year ago. Homes are staying on the market for slightly longer as demand cools, with a current average of 16 days to find a tenant compared to 12 days in 2023 and 20 days pre-pandemic.
More homes for rent and weaker demand has stalled the growth in rents, which are just 2.4% higher than July 2024. This is the slowest pace of rental inflation for four years (July 2021) and less than half the annual rate recorded a year ago (5.1%). The average UK rent is £1,300 a month, with rents posting small falls in some markets as weaker demand and higher supply impact rent levels. Supply and demand are coming back into balance, but the unaffordability of home ownership is still keeping people in private renting, which is maintaining rental demand above pre-pandemic levels. Rental inflation remains on track to be 3% over 2025.
