Latest data from a leading online property portal shows the UK rental market remains fiercely competitive, with its latest data revealing that each rental property receives an average of 11 tenant enquiries, nearly double the six enquiries seen in 2019.

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Although there has been a slight increase in the number of available properties, demand continues to exceed supply, maintaining landlords' advantageous position.

According to the portal’s analysis, the availability of rental properties has increased by 7% compared to last year, while the number of tenants actively searching for homes has decreased by 19%.

This change has somewhat alleviated market pressures, leading to a deceleration in rental growth rates.

However average rents outside of London have risen to £1,339 per month, a 4.5% year-on-year increase, which is the slowest annual growth since 2021. Meanwhile, rents within London have seen a 2% increase over the same period.

The portal’s spokesperson clarified: “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.”

The competitive environment highlights the continuing demand for rentals, even as the market shows signs of steadying.

The slowing down of rental growth suggests that many tenants have reached what experts call an ‘affordability ceiling’. The portal forecasts that average newly advertised rents will increase by a more modest 3% in 2025, both in and outside of London.

Currently, tenants are finding it challenging to cope with rental rates, with 26% of rental properties needing price reductions before securing tenants, up from 23% last year. This indicates that landlords and letting agents are adjusting their strategies to ensure properties remain affordable for renters.

In spite of the present challenges, the rental market shows continued strength, with landlords experiencing consistent income growth and the spokesperson added: "We’re likely to witness a more usual growth rate of around 3% in newly advertised rents next year," underscoring the sector's resilience.

These figures highlight the enduring robustness of the rental market for landlords. While tenant affordability may limit rent hikes, the consistent high demand for housing guarantees excellent occupancy rates and minimal vacancy periods.

The data reveals a chance for landlords to rethink their pricing approaches. In a market where tenants are highly conscious of costs, setting rental rates that are both competitive and fair can attract and secure long-term, dependable tenants.

Moreover, the 7% increase in available properties from last year presents a chance for landlords to expand their portfolios in high-demand areas.