Rents dip 6.1% from last year, 0.4% down in April

Average rent levels fell 0.4% to £635 per month for Your Move’s tenant clients in April.

Rents declined 6.1% compared to one year ago, from £677. Tenants signing up to a lease in April 2009 are saving an average of £1,050 a year compared with those who took up a new lease at last year's peak of £723 in July.

According to the data available from Your Move, the cheapest areas for rental property are in the North West of England and Yorkshire & the Humber, where rents are averaging £467 and £494 per month respectively. By contrast, rents in the North East and East of England have increased by 10.6% and 11.3% respectively in April, to £608 and £729.
Your Move's Managing Director David Newnes commented: “Stock levels are still relatively high in many areas of the country, giving tenants more choice and compelling landlords to compete on price. But interest in the sales market is picking up and reluctant landlords who were forced by the chronic lack of buyers to let their properties in the short term are now beginning to put properties back on the market, so supply is very gradually dwindling.

“Tenants had a lot more leeway to negotiate on price six months ago when the sales market was worse.”

One of the possible reasons for this decline, which corresponds with Your Move's own 1.2% decline in new tenant registrations, is the recent new-found opportunity being grasped by many first-time buyers who for the first time an some months are able to afford to buy properties as a result of the downturn on house prices. Were it not for the ongoing limitations in mortgage availability & criteria which still keeps many would be first time buyers from getting on the housing ladder, it is likely that rents may have dropped further still.