The “red hot” rental market is slowly cooling down, according to exclusive data obtained by the BBC, but tenants are reporting they are still caught in a price trap.

The costs for tenants who move and sign a new lease are According to the real estate portal Zoopla, this is the lowest rate in almost three years.

But the trend continues to rise, and on average there are 17 prospective tenants applying for each available apartment.

The picture is also very different in different areas. A couple in Birmingham said they felt “depressed, isolated, panicked and angry”.

“It’s hard to stay motivated at work when you feel like all your hard work is just to keep your head above water,” says Mike Buller, who is in his 40s and lives with his wife, Lisa.

The rise in rents for new lets – that is, people moving to take out a new tenancy – has slowed in Britain’s second-largest city, but is still rising, as in most areas.

The couple, who are saving to buy a home, said only a sharp drop in rents would have a noticeable impact.

Zoopla data seen by the BBC shows that rental affordability has improved, with rent increases for newly let properties now roughly in line with rising incomes. The data does not include people renewing a lease on existing properties.

The 5.7% rise in UK rents in the year to the end of June was the lowest increase since September 2021, according to the data.

In the first six months of this year, costs rose by just 1.6 percent. This is the lowest half-year increase in three years.

“We have moved from a market that has been overheated in recent years to one that is still hot but cooling down,” said Richard Donnell, managing director of Zoopla.

Despite the slowdown, rents are still 20 percent more expensive than they were a few years ago, he said, forcing some tenants to share with other tenants or lower their expectations.

The decline is partly due to a lower level of competition. Last year there were around 30 to 35 tenants vying for each available property. That number has now fallen to 17, according to figures from Zoopla, but that’s still two to three times as much competition as before the pandemic.

Various rental agencies also report shorter queues for viewings.

Several factors are responsible for the decline in demand. The most important drivers include students and graduates.

A decline in the number of students, some from abroad, has In some areas, competition has decreased. Some graduates have now returned to their parents’ homes for fear of the costs involved.

“About 80 percent of my friends graduated from university and moved straight back home to their parents,” says Monty Savage, who shares a flat with his cousin in Nottingham.

He graduated last year, has a job and, after paying his rent of £1,100 a month, relies on financial support from his parents to pay other bills.

A separate study by property company Savills suggests that parental support continues into home ownership. Analysis of industry data found that 57% of first-time buyers – 164,000 in total – received family support when purchasing their first home with a mortgage in 2023. That was the highest proportion in 11 years.

According to the Zoopla study, tenants moving to Monty’s hometown of Nottingham even had to expect a slight drop in prices in the first half of the year compared to the same period in 2023.

Rents also fell in Brighton, London and Glasgow.

Mr Donnell said local markets were different. Some had invested more in rental properties, others had “overcharged” rents, meaning rents had to fall to become affordable for potential local tenants.

On the other hand, for some first-time buyers, mortgage rates had fallen enough to allow them to give up their rental property and buy their own home.

In Derby, rents are rising despite its proximity to Nottingham. Imogen Pearson said the intensity of competition was ridiculous. She said she had lost out on some properties because people had paid a deposit before even going for a viewing.

“I would understand that in London or Manchester, but not in the suburbs of Derby,” she said.

“The more money you spend, the longer you have to rent.”

Ultimately, the number of properties available for rent has not increased since 2016, says Donnell, while demand has increased – hence the rising costs for tenants.

Despite a 39 percent drop in demand for rental housing last year, he said the situation would only become more affordable for people on low incomes or welfare recipients if more housing became available.

In the meantime, people need to shop around, figure out what they can afford where, and talk to local real estate agents who are familiar with what’s available.

Zoopla bases its figures on its listing data, which covers around 80% of the houses offered for rent.

Agents say there are some simple ways to make securing a rental property easier, including:

• Start your search long before the end of the tenancy and contact several agents
• Have pay slips, a reference and a reference from a previous landlord ready
• Build a relationship with agents in the area, but be prepared to expand your search
• Be sure of your budget and calculate how much you can offer in advance
• Note that some agents provide previews of their properties on social media before listing them.

There are more tips Here and help with your tenancy rights Here.