Executive summary
- UK rental inflation slows to +6.6% – the lowest rate for 30 months
- London leads the slowdown with rents up 3.7% over last 12 months
- Rental demand is down 25% but still >2x pre-pandemic
- Supply of homes for rent up 18% but still 1/3 below pre-pandemic
- Rents have fallen in some cities over last quarter as market dynamics start to shift
- Headroom for rental growth in most affordable areas
- Supply/demand imbalance will continue to narrow slowly
- Essential for political parties to put forward specific policies to grow the size of the private rented sector
