Executive summary
- UK rental inflation slows to +7.8%, a 2-year low
- Rental demand down 20% year-on-year as one-off pandemic factors ease and the labour market cools
- A fifth more homes available for rent than a year ago but current supply still below pre-pandemic average
- Rental inflation slows rapidly in London to 5.3% as supply/demand imbalance narrows and affordability pressures hit pace of rent rises
- Scotland remains area with fastest annual rental growth at 11.6%
- Over half of private rented homes are in £1,000+ per month markets
- Rental affordability at decade high and unlikely to improve quickly
- Expansion in rental supply is the main route to better affordability
