Rents are still rising across the country – although the pace of increases is slowing down.
Landlord insurer Homelet reports rents jumped by 2.3% in August.
The average rent outside London is £729 a month, while renters in the capital are paying £1,164 a month.
Although tenants are paying more for a buy to let home, the rate of monthly increases is slowing.
Only London (2.4%) and the South east (3%) reported rent increases of more than 2% in August than July.
The largest fall in rents during the month was 3.5% in the North West.
Many other regions, like the Midlands and South West, saw prices static, rising or falling less than 1%.
Martin Totty, CEO of Homelet’s owner Barbon Insurance Group, said: “August is traditionally a slower month for the rental market and similar dips have been seen in rental prices in previous years.
“Nevertheless, the cooling in the rental sector may prove to represent the beginning of a trend towards a more settled market after several months of much more significant growth. A similar cooling has been seen in the wider housing market, with house price indices recording an easing of house price growth.”
The figures also showed that annual rent rises were still strong on the back of higher increases a year ago.
Year-to-year, London rents were 11.4% up. Other strong growth was seen in East Anglia (8.4%) and the South-East (5.3%).
Across the country, the average buy to let rent rose by 8.2% over the past 12 months. The average rent in the UK including London now stands at £921 a month, compared to £851 a year ago.
The Homelet rental figures are derived from carrying out around 350,000 tenant references a year for landlords and letting agents.