Over the last decade, rents have risen by a total of 54% and energy bills by 46% across the UK, leaving tenants paying a combined extra £5,993 in rent and energy bills annually, according to Hamptons latest monthly lettings survey.  

But the estate agent adds: “Falling energy bills are likely to be offset by rising rents this year.”  

It estimates that average annual energy bills will fall to 80% of the average monthly rent by the first quarter of 2025, setting a return to the norm.  

Last month, annual energy costs matched average monthly rents for the first time since the first quarter of 2017.  

The average rent on a newly let home in March eased from 7.1% annual growth in February, down from an 8.3% rise in January and a peak of 12% last August.  

However, the agent points out that rents on newly-listed properties last month were 31% above their pre-pandemic average.  

It adds that the West Midlands was the first region outside the South of England to see average rents top the £1,000 a month mark, and the only region where tenant costs are still growing at a double-digit pace of 10.1%.  

In Greater London, monthly rents rose 5.8% from a year earlier to £2,304.  

Hamptons head of research Aneisha Beveridge says: “During the last two years, tenants have found themselves squeezed financially from all sides. While their ability to afford the rent is typically tested when they move into a new home, increases in rents have come alongside big hikes in energy and food bills.   

“Even though increases in these costs are slowing and, in some cases, reversing as inflation nears its 2% target, living costs remain much higher than two years ago.   

“In the short term at least, falling energy prices are likely to see the issue drop down the political agenda.   

Beveridge adds: “Therefore, minimum energy performance certificate standards for rented homes look unlikely to be introduced by the current government. But with a potential change of government, in the medium-term, landlords might see renewed pressure to make the homes they’re renting out more energy efficient.   

“When the number of rental homes on the market is up 30% on last year and the number of potential tenants is down by a fifth, rents would normally be falling. But these year-on-year comparisons mask the longer-term picture, where supply is down and demand is up.   

“While rental growth has slowed from record levels, as more landlords roll off cheaper fixed-term deals, rents are still creeping upwards. In most places outside central London, landlords are still achieving record rents on the back of long-term tax and interest rate pressures.”