Less intense competition is partly behind the slowdown. Last year, about 30 to 35 tenants were chasing every available property. That has dropped to 17, according to Zoopla figures, but that is still two or three times the level of competition seen before the pandemic.
Various lettings agencies have also reported shorter queues to view.
A number of factors are at play when it comes to falling demand, with students and graduates among the key drivers.
A drop in student numbers, partly those from overseas, has lowered competition in some areas. Meanwhile, some graduates – spooked by the costs involved – have moved back into the family home.
“About 80% of my friends finished university and went straight home to live with their parents,” said Monty Savage, who shares a flat with his cousin in Nottingham.
He graduated last year, has a job, and after he has paid his rent of £1,100 a month, relies on his parents to help financially with other bills.
Separate research from estate agency Savills suggests parental support continues into homeownership. Its analysis of industry data found that 57% of first-time buyers – a total of 164,000 – had family assistance in buying their first home with a mortgage in 2023. That was the highest proportion for 11 years.
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