While rents in the capital are still up by 3.7% compared to this time last year, that’s a big drop from the whopping 13% increase we saw back then. In fact, over the past three months, rents have actually gone down by 0.3%.

Why the sudden change? Well, it seems like soaring mortgage rates aren’t putting everyone off buying a home. With some mortgage rates now dipping back down to 5%, more first-time buyers are taking the plunge and finally escaping the rental trap. This means there’s less competition for rentals, taking the pressure off prices.

More homes to choose from

According to property website Zoopla, demand for London rentals has plummeted by 28% in recent months, while the number of properties available to rent has jumped by nearly a quarter (23%).

Adam Jennings, an expert from estate agent Chestertons, said: “We have seen more rental properties become available which is good news for tenants currently wanting to move.”

And it’s not just London seeing this trend. Across the UK, rental growth is slowing down, although rents are still up by an average of 6.6% compared to last year.

Rent pressure still on, but could things be changing?

However, the average London rent is still a hefty £2,122 per month, and with 15 people fighting for every rental property, it’s still a high-demand market out there.

Richard Donnell, from Zoopla, warns that while things are looking up, the government needs to do more to help renters:

“Growing the supply of rented homes, both private and affordable, should be among the top housing priorities for the next Government.”