Have you noticed that rent increases, while not as steep as before, still feel like a heavy burden? Data provided exclusively by Zoopla to the BBC in August suggests that the UK rental market has cooled down somewhat in 2024. But despite the slowdown, rents continue to rise, creating an ongoing struggle for many tenants across the country.

The Cooling Trend: A Temporary Relief?

After hitting a peak in 2022, with rental prices soaring by 12%, the rate of increase has slowed significantly. In 2024, rents have risen by 5.6%, marking the slowest rate of increase in three years. While this might seem like a welcome respite, it’s important to remember that rents are still climbing, just at a less frantic pace. Renting is now 20% more expensive than it was two years ago, and the competition for available homes remains fierce.

On average, there are 17 prospective tenants vying for each available property – more than double the number seen before the COVID-19 pandemic. This intense competition has kept rental prices high, even as the rate of increase has decelerated. For many, this means that finding an affordable place to live is still a significant challenge.

The Ongoing Struggle: Why Rents Remain High

A slower rate of rent inflation doesn’t mean that renting has become more affordable. The lack of available housing continues to be a critical issue, driving up demand and keeping prices elevated. Building more homes is widely seen as the long-term solution, and the Labour Party has been vocal about its plans to overhaul planning laws to stimulate new housing supply. However, while these changes may bring relief in the future, it’s unclear when or if they will translate into more homes and lower prices.

In the meantime, the pressure on renters shows no signs of easing. Anecdotal evidence suggests that parents are increasingly stepping in to help their children with rental deposits and even monthly payments – a role they traditionally played more often in helping with mortgages. This shift highlights just how difficult the rental market has become for many, particularly young people trying to establish themselves independently.

Regional Variations and Future Hopes

As with all things property-related, the impact of these trends varies by location. Some areas have seen more dramatic decreases in rent increases, offering a glimmer of hope that conditions might improve over time. If interest rates and mortgage costs continue to come down as expected, there may be further relief on the horizon for renters and potential homeowners alike.

However, the broader picture remains challenging. With demand still outstripping supply and the cost of living continuing to rise, the rental market is likely to remain tough for the foreseeable future.

Your Next Steps as a Tenant

1. Explore All Options: If you’re struggling with high rents, consider expanding your search to include less competitive areas. While moving might not be ideal, it could provide some financial relief.
2. Seek Support: Don’t hesitate to ask for help if you need it. Many tenants are now receiving support from their families, and there are also charities and local organisations that can offer advice and assistance.
3. Stay Informed: Keep an eye on market trends and policy changes that could impact your situation. Being informed about potential changes in interest rates, planning laws, or housing initiatives can help you make better decisions about your living arrangements.

While the cooling of the rental market offers some relief, the challenges for tenants are far from over. High demand, limited supply, and ongoing financial pressures mean that renting remains a significant burden for many. As the government takes steps to address these issues, it’s crucial for tenants to stay informed and explore all available options to manage their housing costs effectively.