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Average annual rent on a newly let property is £3,240 more expensive than at the end of the coronavirus pandemic, according to figures from Zoopla.
Rent began to soar in 2021 because of high demand from tenants after lockdowns were lifted and limited numbers of available properties.
The annual cost of renting has gone up by 27% in those three years, compared with a 19% rise in average earnings over the same period.
However, the rate at which rents are rising is now the slowest for three years, the property portal has said, as potential tenants face limits on what they can afford.
Renters have faced a “red-hot” market in recent years, with a host of prospective tenants chasing each available property, and rents surging on the back of the high demand.
It led some applicants to offer months of rent upfront or to write CV-style letters to agents to try to get ahead of the competition.
Zoopla said there were signs of this market cooling.
But those with the least to spend, in the cheapest areas, may now be facing the sharpest rent rises.
“With more renters than there are homes to rent, people are seeking out the best value for money,” said Richard Donnell, executive director of research at Zoopla.
“Within cities, rents are typically rising faster at the lower end of the market.”
Student Blyth Eling said her rent left her with “virtually no spending money”.
That could hit those on low-incomes, as well as students.
On average, rents for newly let properties were now 3.9% higher than a year ago, Zoopla said.
However, pockets of fast-rising rents remained. Annual rental inflation stood at 10.5% in Northern Ireland compared with 1.3% in London.
The National Residential Landlords Association (NRLA) said that 31% of landlords were planning to sell properties they rent out in the next two years.
It wants changes to housing taxation and reassurances over no-fault eviction rules.
“What tenants need is greater choice. That means encouraging and supporting the vast majority of responsible landlords to stay and continue to provide decent quality housing,” said Ben Beadle, chief executive of the NRLA.
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