Rents have soared to new highs, with one index revealing that average advertised rents for new properties outside London have climbed 0.6% this quarter to £1,349.
Rightmove says that in the capital, rents have edged up by just £3, or 0.1%, reaching £2,698, marking a 2.5% rise compared to last year.
The quarterly increase outside London is the smallest for this period since 2020.
Notably, the supply of rental properties has surged, Rightmove says, with an 11% increase in new listings in March compared to last year.
There was an 18% rise in overall available homes - as tenant enquiries dipped by 7%, suggesting a shift in market dynamics.
PRS is very busy
The platform's property expert, Colleen Babcock, said: "The rental market is still really busy, and as the regional picture shows, it's likely to feel even busier in some areas of Great Britain than others.
"It's good news for tenants that on the whole, the balance between supply and demand is improving."
She adds: "This is having a knock-on effect on rental prices, with rents increasing more slowly and more landlords reducing their advertised price."
Rise in BTL lending
Contributing to this influx of homes to rent is a 32% surge in buy to let lending at the start of 2025, as reported by UK Finance recently.
There was also a 7% rise in first-time buyer sales and a 5% increase in prospective buyers.
They were motivated by improving mortgage rates and a stamp duty hike in England from 1st April which saw tenants moving to homeownership.
However, the market remains strained compared to pre-pandemic levels with tenant demand being 10% higher than in 2019.
Rents rise by 40%
At the same time, the number of available properties is 33% lower, resulting in an average of 12 enquiries per rental home.
This figure, though down from 16 last year, is double the 2019 average of five.
Regional disparities are stark: the North West sees 18 enquiries per property, while London, with a better supply-demand balance, averages eight.
Affordability challenges also persist, with a quarter of rental properties now seeing price reductions — the highest proportion since 2018.
Over the past five years, rents have risen 40%, outpacing a 31% increase in average earnings, forcing landlords to adjust prices to attract tenants.
Goodlord says rents have risen
Further insights from the Goodlord Rental Index reveal that April 2025 marked the fourth consecutive month of rising rents.
It says the average rent per property in England reached £1,216, a 4.2% increase from £1,166 in April 2024.
Regional variations highlight the North West, South East and West Midlands with higher than 5% annual increases, while the East Midlands saw less than 1%.
In London, however, Goodlord's data shows rents dipped by 1% month-on-month.
The firm's chief executive, William Reeve, said: "It's been another month of steadily increasing rents, at a time of the year when we often see more ups and downs in terms of rental averages.
"This continues to underscore the prediction that this summer will bring a rental spike across the country, although rising salaries will be offsetting this impact for tenants to some degree."
Student sector offers opportunities
The managing director of Accommodation for Students, Simon Thompson, said: "For student landlords, the current market presents both opportunities and challenges.
"The growth in rental supply and moderating demand offer a chance to attract reliable tenants, particularly in high-demand areas like the North West.
"However, the need for rent price reductions in a quarter of properties signals affordability pressures."
He adds: "The Renters' Rights Bill, with measures like banning advance rent, could complicate securing tenancies in competitive regions which is why some student landlords will need to be aware of rent trends and react accordingly."
