Asking rents have fallen by 1.5 per cent to an average of £1,985 for a two-bedroom property in London over the past year.
This comes as supply in the rental market remains high, with London seeing a 15 per cent year-on-year increase in available properties, reducing the competition between tenants to find the right home.
Unsurprisingly, the five most in-demand areas in the capital are also some of the cheapest, according to the latest Rightmove Rental Trends Tracker.
Erith, in the south-east borough of Bexley, tops the list. Average asking rents for a two-bedroom home stand at £1,045 per calender month - about half the London average wage. Located in Zone 6, direct train services reach London Bridge station within 40 minutes.
Neighbouring Belevedere, one stop further on the train, also makes it to third position.
Carlshalton, in the south London borough of Sutton on the far reaches of the capital, takes second place with average rents of £1,257.
Sutton was recently voted as one of the top five happiest places to live in London - despite the issues commuters regularly report regarding the district's rail services.
Average rents cost £1,351 per month in Snaresbrook, on the edges of Epping Forest in Redbridge. In Zone 4, its Central line Tube station sits at one end of the pretty High Street, providing 20-minute journey times to Bank and 28 minutes to Oxford Circus. Offering the best of both worlds, it's little surprise it comes in fourth position.
Dagenham, found in London's most affordable borough, Barking & Dagenham, is the fifth most popular rental hotspot. Direct links from Dagenham Dock to Fenchurch Street take just 21 minutes and residents of the borough recently awarded the area 7.45/10 in a life satisfaction survey.
Last month Countrywide reported that less people are paying above asking price to secure rental homes in central London - with just eight per cent of homes let above asking price, falling from 17 per cent in the same period last year.
“In London and the South East recent increases in the number of homes available to rent, outpacing the growth in tenants looking for a home, has meant that bargaining power is shifting towards tenants from landlords. This is slowing rental growth," says Johnny Morris, research director at Countrywide.
“Unlike the sales market rental prices adapt very quickly to changes in market conditions, meaning asking prices are finely tuned to tenant demand.”