Hamptons attributes the deceleration in rental growth to a combination of affordability challenges for tenants and an increase in the availability of rental properties.

The latest Hamptons Monthly Lettings Index also revealed a 30% rise in available rental homes last month compared to the same period in the previous year, when the availability of rental properties was at its lowest.

This increase in stock levels is primarily due to properties taking longer to let, rather than an increase in purchases by landlords. Nevertheless, the current stock of rental properties is still 41% lower than the levels observed in February 2019.

Scotland experienced the highest rental increases in the past month, with the average cost of newly let properties climbing by 11% year-on-year. Scotland, alongside the East of England, remains one of the few areas where rental growth continues at a double-digit rate.