According to Rightmove’s rental trends tracker, this is the second largest year on record for rent growth behind 2021.

However, the report added that the pace of rent growth was easing, with increases in thefinal three months coming to 0.9%, which compares to 3.2% in the previou quarter and is the smallest quarterly increase for two years.

Capital gains

Average asking rent in London also reached a new high of £2,480 per calendar month, an increase of around 16% year on year.

Inner London rents have also surpassed £3,000 per month for the first time, which is also up nearly 17% compared to the same period last year.

‘Positive signs’ that rental competition starting to ease

The report continued that the competition for available properties was starting to ease, with the number of available properties to rent in December up 13% on the same period last year.

New properties coming up for rent increased 5% year on year in December and the number of tenants looking for a property to rent was seven per cent up on the same period.

Competition between tenants fell  6%year on year and by a third compared to September, when the supply demand gap was at a record high.

The report warned that despite “positive signs”, demand was still high, and number of properties to rent was still down by 38 per cent compared to 2019.

The number of people enquiring about a property was 53 per cent up on the pre-pandemic period.

Rightmove: ‘Competition for a home could ease’

Rightmove’s director of property science Tim Bannister said: “Although the fierce competition among tenants to find a home is starting to ease, it is still double the level it was back in 2019.

“[However], there appears to be some more property choice for renters compared to the record low levels of last year which would slightly ease the fierce competition to secure a home.”