The average advertised rent for homes outside London has remained flat from Q4 to Q1 for the first time since 2017 at £1,370 per month.

Within London, rents rose by 0.7% from the final quarter of last year to the first quarter of this one, reaching £2,736 per month, the latest index from Rightmove shows.

Average rents outside of London are still 1.6% higher than this time last year and within the capital they have risen by 1.4% over the same period.

The average rental home now receives eight enquiries, down from 11 a year ago and 29 at the 2022 peak.

More than a quarter of rental listings have had their price reduced, the highest proportion at this time of year since Rightmove started recording this metric in 2012.

Rightmove says there are currently no major signs on a national scale of changes to market dynamics ahead of the Renters’ Rights Act coming into effect from May 1.

The number of available homes to rent is now 3% higher than a year ago, with supply at its highest level for this time of year since 2021. 

However, Rightmove points out that despite the improvement in the availability of rental homes, levels remain below longer‑term norms. 

In common with residential borrowers, landlords are facing a spike in mortgage costs.

The average two‑year buy‑to‑let mortgage rate for a landlord with a 25% deposit is now 5.79%, up by 93 basis points from 4.86% before the war in Iran started. 

Rightmove property expert Colleen Babcock says: “Rents holding steady this quarter reflects how affordability remains stretched, but also how supply and demand is more balanced.

“With more homes available to rent and less competition between tenants, landlords are needing to position rents correctly for the current market to secure a tenant.

“As market conditions rebalance, homes are taking longer to let.

“The market is more price sensitive, with landlords needing to be realistic from the outset to secure a tenant and reduce the risk of void periods.

“Around 26% of rental listings are now reduced in price while advertised, the highest proportion recorded since Rightmove began tracking this metric in 2012.

“Ahead of the Renters’ Rights Act coming into force, the data doesn’t suggest a single or immediate reaction from landlords.

“Instead, behaviour appears more cautious and considered, with many focusing on long-term tenancies, pricing and avoiding void periods in a more balanced market.

“It’s still early days, but the most immediate shift due to the war in Iran has been some significant increases to borrowing costs for landlords, which may filter through to the market at a later stage.”

Chestertons head of residential Adam Jennings adds: “Across Q1, we’ve seen a clear pick-up in lettings activity, particularly towards the end of March, with a noticeable increase in viewings and agreed lets compared to earlier in the quarter.

“With the Renters’ Rights Act coming into force from 1 May, there has understandably been some uncertainty among landlords.

“However, the strength of demand we saw in late March has provided reassurance, with many landlords continuing to see competitive levels of interest and strong rental values.”