Rents fell in June by 0.3 per cent when compared to the same time last year, the second successive month in which rents showed a decline.
June’s decline, according to HomeLet, mirrors the 0.3 per cent fall seen in May, which had been the first annual fall in rents recorded since December 2009.
The average rent agreed on a new tenancy during June was £908, down slightly from £910 in the same month of 2016.
The London rental market continues to act as the biggest influence on average rents across the country, with a 2.6 per cent decline in the average rent agreed on a new tenancy in the city last month.
Rents in the capital have fallen on an annual basis for three months in a row, having risen more quickly than anywhere else in the country during the first half of last year; rental price inflation in London peaked at 7.1 per cent in June 2016.
HomeLet’s data suggests that landlords are reluctant to charge higher rents in the current uncertain economic climate. While demand for private rental property remains high relative to supply, landlords continue to be conscious of affordability issues for tenants.
It says rental price inflation has now been declining for 12 months, since June 2016. At the time, rents were up 4.5 per cent on an annual basis, but since then the rate of growth has dropped gradually each month to reach -0.3 per cent.
Regional data is available via the infographic below.