The BBC – which through its use of exclusive Zoopla data has championed tenants in recent years – has acknowledged that the lettings market has slowed.

Using new research from the portal the BBC says new tenancy rents have risen at their slowest rate for nearly three years.

However it insists there are still 17 prospective tenants on average are chasing every available home.

The data does not include those renewing a rental agreement in existing properties. 

Zoopla’s estimated 5.7% increase in UK rents in the year to the end of June was the slowest rise recorded since September 2021.

The cost went up by only 1.6% in the first six months of this year – again the slowest rise during any half year for three years.

“We have moved from a red-hot market over the last couple of years, to one which is still hot, but cooling” says Richard Donnell, executive director at Zoopla.

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.

The BBC says 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.

Ultimately, the number of properties available to rent has failed to grow since 2016, according to Donnell, while demand has risen – hence the rising costs for tenants.

Despite a 39% fall in rental demand in the past year, he says the situation will only become more affordable for those on low incomes or reliant on benefits when more homes become available.