The news is good for renters but not landlords - rental growth has slowed and dropped in many capital cities.

And to make matters worse the latest rental report from CoreLogic RP Data also revealed that weekly rents fell by a further 0.4 per cent nationally during August.

Predictions are that rates of rental growth will continue to drop in the coming months.

CoreLogic RP Data analyst Cameron Kusher said increasing housing and rental stock supply and slower migration rates would all have an impact on the rental market.

“Based on year-to-date data results, rental growth conditions have softened during 2015,’’ he said.

Cameron Kusher of CoreLogic RR Data said more investors meant more rental stock available and a slow down in rental growth.Source:Supplied

He said more investors entering the market had contributed to the result, as more investors meant more properties added to the rental stock.

During August rents went down in every capital city, except Sydney, where they remained at the same level as the previous month.

The best performer for landlords during the past year was Sydney, where rents went up by 2.3 per cent. The median rent is now $592.

Melbourne rents have gone up 2.1 per cent since this time last year to reach $447.

In Brisbane rents went up 0.9 per cent to $431. Hobart rents went up by 1.5 per cent to $336.

All other capital cities recorded drops in rents since the same time last year with Darwin recording the most significant drop of 10.5 per cent to $539.

Perth rents dropped by 5.7 per cent to $462 and Adelaide rents dropped by 0.2 per cent to $365.