New Zealand's rental market is beginning to show signs of cooling off after a red hot summer, according to Trade Me's latest Rental Price Index.

That slowdown is seen in the Bay of Plenty where, in April, rental prices have remained in the same spot as March.

This follows the trend in Auckland, where median weekly rental prices remain the same for the fourth month in succession.

Trade Me Property sales director Gavin Lloyd says the national median weekly rent remained unchanged for the second consecutive month in April at $540 per week.

'While April's median weekly rent marks a four per cent year-on-year increase, if we look closely at our data from March and April, since the government's new housing policy was announced, we've seen price growth begin to slow, for now.

'In April, we also saw demand for rentals fall 17 per cent nationwide when compared to March, with every region experiencing an annual drop in demand apart from Gisborne and West Coast. This will come as welcome news for tenants and could help to alleviate some pressure on the market.”

Auckland rents remain at $590 whilst Wellington rents are up $5 to $595 last month.

'Canterbury ($450), Taranaki ($460), and Waikato ($495) bucked the national trend to reach record-breaking highs last month,” says Gavin.

'While Bay of Plenty and Southland followed in Auckland's footsteps and saw no change in their median weekly rents in April when compared with March.”

Gavin says supply was another contributing factor.

'The number of rentals on the market in April was down nine per cent on the month prior.

'We expect that one reason we're seeing less rentals come on to the market is because renters are staying put,” he explains.

'It's a highly competitive market and many tenants will be happy to stay where they are rather than enter the hot rental market.”

Looking ahead at the next few months, Gavin believes we may see the market continue to quieten down.

'The winter months are typically much quieter with everyone hunkering down in the cold, and that coupled with the new string of government initiatives designed to take the heat out of the market, may mean we see prices head south.”