UK rents dip in February – led by London falls

Landlords are seeing rents level off as tenants take longer to commit and affordability pressures shape new deals, HomeLet says.

Its latest rental index shows average UK rents fell to £1,301 in February, a 0.1% month-on-month fall from £1,302 in January.

That leaves rents 2% higher than a year earlier, when the average stood at £1,275.

While the change is marginal, it interrupts a run of monthly rent rises.

Properties take longer to rent

The firm’s head of partnerships, Carrie Alliston, said: “We’re currently seeing a rental market that’s slowing in a different way; not through falling rents, but through properties taking longer to let.

“The average proportion of income spent on rent (30.9%) has only gone up by 0.1% since November last year, which shows that tenants are being more cautious about what they can afford and how sustainable higher rents really are.”

She added: “As we move closer to the Renters’ Rights Act, this shift in behaviour underlines the importance of prioritising suitability and stability over simply pushing for the highest possible rent.”

London rents continue falling

Outside London, HomeLet says rents increased by £2 over the past month to £1,120.

That’s a 0.02% rise since January and places rents 1.8% above their level in February last year.

In the capital, however, rents fell for a fourth consecutive month to £2,067.

That is 0.5% lower than January and 2% higher than 12 months ago.

Six regions recorded a decline compared with January, while six posted an increase, highlighting varied local conditions rather than a single national trend.

Northern Ireland’s rents are up 0.4% month-on-month and 5.1% annually; Scotland’s rents grew by 0.6% and 4.6% respectively while rents in Wales fell -1.1% compared to January and 3.1% annually.