Rents fell by 0.9% between November to December – providing some respite to tenants after months of increases, the HomeLet Rental Index has revealed.
All regions saw the cost of renting fall, including -2.2% reduction in Greater London.
Despite these latest falls rents have soared by 8% in the past year, and by 19.6% since 2021.
Andy Halstead, chief executive of HomeLet & Let Alliance, said: “Although these figures can be viewed as a short term win for tenants at least, let’s not kid ourselves that this represents anything resembling a breakthrough.
“We can safely say that 2023 was a year that most landlords and tenants will want to forget. Monthly rents increased by 8% in the matter of a year and have soared nearly 20% since 2021.
“So, whilst 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. 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 buy-to-let mortgage rates.”
In Scotland rental growth since 2021 stands at 23.4%, as rent controls have persuaded landlords to raise them significantly on new tenancies to compensate for rent controls. In Greater London meanwhile they’ve risen by 21.4% since that period.
