Rents fell in June by 0.3% compared to this time last year, the second month in a row to record a fall.
The June fall was reported by HomeLet and matches the 0.3% fall recorded in May, the first time average rents had fallen since December 2009.
Average rents in Scotland fell in May, with prices falling back ahead of the general election.
Average rents stood at £561 at the end of the month, a fall of 2.3% on the figure for the end of April.
Faced with the prospect of having their income significantly reduced, if not wiped out completely, many landlords will have little choice but to increase rents in order to compensate for the much higher tax bills they will be facing as Section 24 is rolled out.
House prices have fallen in June for the first time since 2009, in a sign the spring selling season may be stalling.
The data, from a survey by Rightmove, has revealed that asking prices have fallen by o.4%, bringing the annual rate of price increase down to 1.8%, the lowest it’s been since April 2013.
In a previous article, we looked at how Section 24 will change the existing tax system for landlords as it’s rolled out, but many landlords have expressed confusion about what the reforms are intended to achieve.
In the second article in our series on Section 24, we will look at the reasons why the legislation was introduced and how landlords have responded to it.