Renters paying £1,000 more a year despite ‘slowdown in increases’

It attributed the fall to changes in demand and affordability rather than any expansion in supply, it said.

Furthermore, the report said it is unlikely the imbalance between rental supply and demand will improve materially over the next 12 months.

New investment in the private-rented sector remains low, while demand is above average.

Richard Donnell, executive director at Zoopla said: “Rents continue to grow faster than average earnings, although the gap is much narrower than a year ago.

“Rental demand continues to run well ahead of available supply which is keeping the upward pressure on rents, but there are some areas where rental growth has stalled.”

He added: “Growing the supply of rented homes, both private and affordable, should be among the top housing priorities for the next government.

“A healthy private rented sector is vital for economic growth and a more balanced housing market. More supply is the fastest route to easing the pressure on renters and improving the overall quality of rented homes.”