Rental inflation increased by 6.6% in April, the slowest rate of inflation since October 2021, Zoopla has reported.

In its latest UK rental market report, the property group revealed that this fall in rental inflation, which has dropped 10% year-on-year, is a result of weaker demand as high base and affordability constraints take hold.

In April, the average monthly UK rate was £1,226, an £80 increase annually. Zoopla said that the "chronic imbalance" between rental supply and demand is starting to narrow, but remains "well out of kilter".

Demand for rented homes is slowing off a high base as one-off pandemic factors start to recede and mortgage rates fall below 5%.

Rental demand is also down 25% over the last year, but competition remains high, with 15 households chasing every rental home, which is double the pre-pandemic average of six (2017-20).

Despite this, with the number of first-time buyers dropping by 22% in 2023, Zoopla noted that this has added to the demand for rented homes.

Although there has been more political focus on the challenges facing the private rented sector, Zoopla has added that "true progress will only be demonstrated by political parties setting out specific plans and goals for the future of the private rented sector in manifestos".

Chief executive officer at Propertymark, Nathan Emerson, commented: "Our member agents have told us for years of the growing disparity in the number of private rented homes on the market in comparison to the rising demand from tenants.

"As legal and financial obligations increase for landlords, it’s no surprise that many are turning elsewhere to invest their money. A priority for the new UK Government should be to support and incentivise landlords to invest, not to deter or penalise them like we’ve continued to see in the past.

"We want to get rent levels back down to sensible and affordable levels for the nation, and without a boost in supply, this is unlikely to happen."

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