“During the last two years, tenants have found themselves squeezed financially from all sides,” said Aneisha Beveridge (pictured), head of research at Hamptons. “While their ability to afford the rent is typically tested when they move into a new home, increases in rents have come alongside big hikes in energy and food bills.  Even though increases in these costs are slowing and, in some cases, reversing as inflation nears its 2% target, living costs remain much higher than two years ago.

“In the short term at least, falling energy prices are likely to see the issue drop down the political agenda. Therefore, minimum EPC standards for rented homes look unlikely to be introduced by the current government.  But with a potential change of government, in the medium-term, landlords might see renewed pressure to make the homes they’re renting out more energy efficient.

“When the number of rental homes on the market is up 30% on last year and the number of potential tenants is down by a fifth, rents would normally be falling. But these year-on-year comparisons mask the longer-term picture, where supply is down and demand is up. While rental growth has slowed from record levels, as more landlords roll off cheaper fixed-term deals, rents are still creeping upwards.  In most places outside central London, landlords are still achieving record rents on the back of long-term tax and interest rate pressures.”

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