Across the country, renters have a good reason to breath a sigh of relief this month. This is because, for the first time in seven years. the average national rent price has dropped, bringing costs more in line with UK earnings. Since last May, rents have dropped by 0.3%, while London's rates have fallen a whopping 3% in the same timeframe.
This is great news for anyone planning to rent a home any time soon, especially in the capital, the north-east and south-east of England, Yorkshire and Humberside, or Scotland. So what's behind the price drop?
Housing market slowdown
Although there were concerns that buy-to-let landlords might quit the business, causing rents to soar upwards as supply dwindled, the opposite has happened. The housing market has slowed down a bit over recent months, so it seems some homeowners are biding their time before they sell by renting their properties out instead.
What's more, new-build flats in London seem to have increased supply – the new Nine Elms development has seen a price reduction of 6% across three months alone.
This surge in available rental properties has been met halfway with a reduced demand, which could be down to government assistance. Help to Buy packages have helped millions of young people get onto the housing ladder already. More mortgages are now available for people with small deposits, so more youngsters are leaving the rental market behind for good.
Equally, 1.2 million 25 to 34-year-olds are still living with mum and dad (and nearly half of them are perfectly happy about it, too).
The Brexit effect?
It seems like everything boils down to Brexit these days. With all this uncertainty rolling around, people aren't looking to move on or upsize as much, and are instead choosing cheaper flat-shares instead of rental contracts.
Equally, it's estimated that fewer European expats are looking to take up residence in the UK. Considering that 75% of new migrants rent rather than buy, this could be having a significant impact on rental demand.