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.
According to the figures, the average rent on a new tenancy was £908, down from £910 at the same time last year.
The fall in rents across the country is being led by London. The Capital recorded a 2.6% dip in rents for new tenancies in June compared to the same time in 2016, a much larger fall than the national average.
Inside the Capital itself, rents in Camden and the City of London saw the biggest falls in rents, with drops of 7.8% in both boroughs. Average rent in both is now £1,905. This adds to a 6.9% fall in May, compared to the same time last year.
Average rents have also fallen year on year in the East of England (-0.1%), the South East (-0.2%), Yorkshire and Humberside (-0.9%), and the North East (-3.1%).
Martin Totty, CEO of HomeLet, commented on the research, saying; “It is now a full year since rental price inflation in the UK peaked at 4.7 per cent, since when we’ve seen progressively more modest rent increases and, over the past two months, falls in some areas of the country.”
Falling rents will add to financial pressures already being felt by landlords, who have been hit by the Section 24 cuts to mortgage tax relief, increased Stamp Duty and the cap on rental deposits. A reduction in rental income could leave landlords caught between falling income and rising costs.
If you’re a landlord coming under financial pressure as a result of recent tax changes, loss of rental income or properties in negative equity, contact our expert team for a consultation on 0161 222 4311 or online at landlorddebtadvisory.com.