A survey of the world’s major cities has found that rents are set to fall significantly over the next 10 years, as the global economic recovery takes hold.
But the most dramatic drop is likely to be in the UK, where a rise in rents is expected to lead to a 10% drop in households earning more than £50,000 a year.
The new findings by the Global Urban Landscape Index (GWLI) show the average rent in London and Manchester fell 2.3% in the first quarter of 2018.
The figures also showed that rents in Paris and Madrid fell by 10% and 2.5%, respectively.
The survey of more than 5,000 residents in the US and Mexico also found that median rents in major US cities were set to drop by 11% and 4%, respectively, between 2018 and 2020.
A fall in rents would help drive down the cost of living and lower housing costs, but there are fears that the impact will be felt by people earning below the national median.
A drop in the average wage for the lowest paid worker would be a major blow for households that earn less than £30,000, according to the survey.
The average rent for the middle class in the biggest US cities is set to decline by 3.9%, while the average household income in Mexico is set for a 3.7% decline.
In London, the average salary for a staff member is set by 8.4% and the average income for a housekeeper is 3.3%.
In Mexico, the median salary is 4.2% and housekeeping workers make 3.4%.
The survey also found an increase in the number of renters in major cities, with the average number of households with a mortgage rising by 16,000 from 4.3 million in 2018 to 5.7 million in 2020.
However, the number with mortgages that are less than five years old is set in its own right to fall by 10,000.