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Around 21 people are competing for every rental property typically, according to a website.
Zoopla, which released the findings, said the average rent was £1,245 per month in July, £63 per month higher than a year ago.
It said a lack of supply remains a major challenge for renters and while the number of homes to rent is higher than last year it remains lower than the pre-coronavirus pandemic average.
One in eight (12.5%) homes listed for sale on Zoopla in July were previously rented.
Higher mortgage rates have acted as an additional catalyst for landlord sales over the past two years on top of longer-term tax and regulatory changes, the website suggested.
The rental market has been suffering from a lack of supply against an ever-growing demand for a concerningly long period of time— Nathan Emerson, Propertymark
Richard Donnell, executive director at Zoopla, said: “Rental inflation is slowing in some major cities where rents are high but they are still increasing quickly in more affordable areas.”
Adam Jennings, head of lettings at London-based agent Chestertons, said: “Tenants are advised to keep their fingers on the pulse of the market and remain in regular contact with their chosen estate agent to heighten their chances of securing their desired property.”
Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “The rental market has been suffering from a lack of supply against an ever-growing demand for a concerningly long period of time.
“The housing sector continues to see issues escalate year-on-year and the real-world effect is that renters face an increasing challenge to secure a suitable property for their needs.”
