Despite the continued slowdown in rental growth for new lets, tenants renewing their contracts have seen rents rise by 6.0% over the last 12 months.

Falling demand and rising supply see disparity in the rental market continuing to ease.

Hamptons also forecast that rental growth is set to increase next year by 4.5% with further rises in both 2026 and 2027.

Despite the fall in rental growth, demand remains high with 15 prospective tenants on average competing for every property.