Rents fall slightly in December to offer tenants ‘a minor win’

The UK’s rents for new tenancies dipped by 0.9% in December 2023, reaching £1,268 which is still 8.01% more than the same month in 2022, the HomeLet rental index reveals.

The average rent, excluding London, was £1,061, a 0.5% decline from November 2023, but an 8.6% rise from December 2022.

London saw a 2.2% drop in its average monthly rent, which was £2,127 which is still 5.9% more than a year ago.

‘Figures can be viewed as a minor win for tenants’

Homelet’s chief executive, Andy Halstead, said: “Although these figures can be viewed as a minor win for tenants at least, let’s not kid ourselves that this represents anything resembling a breakthrough.

“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.”

He added: “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.”

Landlords in the East Midlands saw a 0.3% rent rise to £875

All regions saw a monthly rent fall while landlords in the East Midlands saw a 0.3% rent rise to £875 and the West Midlands stayed the same at £940.

The North East of England was the cheapest region to rent in the UK last month, with an average of £657.

Wales also saw a slight decrease in its average rent, which was £866, which is 0.1% less than November 2023, but 7.7% more than December 2022.