Data provided exclusively by Zoopla to the BBC in August suggest that the rental market has cooled in 2024, with rent rises at their slowest rate for three years, but rents continue to rise.
The rental market came down from a peak increase of 12% in 2022 to 5.6% in 2024.
On average there are 17 prospective tenants applying for each available home, more than twice the amount before Covid, and renting is 20% more expensive than two years ago.
As with all other aspects of our financial lives, a slowing down of the rate of inflation does not mean prices are dropping. Building more homes to address the lack of available housing is something that Labour are making a lot of noise about, and they have already announced big changes to planning laws to stimulate more supply. However it is unclear when this will materialise in more homes and reduced prices.
Anecdotal evidence suggests parents are now helping their children meet rental deposits and payments, not just mortgages, which is a sign of how difficult things have become.
There are postcode variations as you would expect with some areas seeing more dramatic decreases. It is hoped this is a sign of a longer term improvement for renters and home owners, especially if interest rates and consequently mortgage costs come down as expected over time.