Average UK rents have reached £1,268 in December — down 0.9% from last month’s figure, but up 8% on the same time last year, revealed the latest HomeLet rental index report.
According to the data, this is the greatest fall in rents since October 2020.
In London, the average monthly rate has decreased by 2.2% from last month to £2,127.
The North East remains the cheapest area to rent in the UK, at £657 per month, followed by Yorkshire and the Humber, which registered an average rent of £855.
In addition, renter affordability weakened over 2023, with renters paying 33.4% of their income on rent, compared to 31.4% a year earlier.
“While we are cautiously optimistic that things can improve for the UK rental sector, it’s too early to talk about an upturn in fortunes just yet,” said Andy Halstead, group CEO at HomeLet and Let Alliance.
“Of course, marginally lower rents put slightly more money in tenants’ pockets and partially reduce the likelihood of defaults, but the broader landscape is still incredibly challenging for all parties, with little sign of easing.
“Unless we see some dramatic changes, 2024 looks set to bring more of the same; landlords will have to do battle with a familiar array of struggles, including a lack of stock, rising costs and prohibitively expensive BTL mortgage rates.”
