Five areas where rents have fallen in the past year

Only five pockets of Britain have seen rents fall in the past year as typical new tenant now faces paying £1,200 more annually for a home

  • Rents across Britain have rise 9.4% in a year according to Rightmove 
  • Tenants face an undersupply of housing and tough market conditions
  • Burnley, Lancashire, has seen asking rents fall 7% compared to 2022

There are just five pockets of Britain where asking rents for tenants have dropped over the past year, according to data from Rightmove.

Rents rose 9.4 per cent over the past 12 months on average, as the buy-to-let market contends with inflation and rising interest rates.

It means new tenants are paying just over £100 more per month than this time last year.

But a few areas are bucking the trend and rental costs have fallen. Burnley, Lancashire, saw the biggest fall in asking rents with prices dropping 7 per cent on average, to £620 per month, exclusive data for This is Money shows.

Higher costs: There are just five areas in Britain where rents have fallen over the past year

Renters in Hartlepool, County Durham, have seen asking monthly costs fall 6 per cent from £588 in 2022 to an average of £553 this year.

The property website analysed hundreds of local areas and asking rent changes compared with last year.

Tim Bannister, from Rightmove, said: ‘Although asking rents for new tenants have dropped in a small number of areas across Britain compared with last year, it’s more likely that new tenants will have seen rents rise in their local area.

‘Although we’re seeing signs of availability improving, there are still not enough homes to meet the demand of tenants looking to move.’

Redland in Bristol saw rental asking prices fall 4 per cent from March 2022 to the same month this year. 

However, tenants still face high costs in the area as the average rent is now £1,558 – the most expensive of the areas that have seen a drop.


Mortgage calculator

This calculator shows the rental return on your investment property as a percentage of its value

Ladywood in Birmingham and Sale in Greater Manchester have both seen asking rents decrease 2 per cent, taking the average monthly cost to £1,162 and £1,294 respectively.

Looking back over five years, the five areas have all seen an increase with rental asking prices rising the most in Sale – going up 42 per cent since 2018.

The situation has been exacerbated by a shortfall in rental properties. 

Britain has a housing deficit of around 4.3million homes that were never built, according to a study from the Centre for Cities.

Overall the centre estimates it would take at least half a century to fill the deficit, even if the Government reached its current target of building 300,000 homes a year.

At the same time landlords, who provide much needed housing for tenants are leaving the market hit by higher mortgage rates, the loss of tax benefits and increased regulatory burden.

The Mail revealed the shortage in rental properties means tenants are being forced to live in Airbnbs for up to a year. There are a third fewer rental homes available compared to 18 months ago.

What to do if you need a mortgage 

Borrowers who need to find a mortgage because their current fixed rate deal is coming to an end, or because they have agreed a house purchase, should explore their options as soon as possible.

This is Money’s best mortgage rates calculator powered by L&C can show you deals that match your mortgage and property value

What if I need to remortgage? 

Borrowers should compare rates and speak to a mortgage broker and be prepared to act to secure a rate. 

Anyone with a fixed rate deal ending within the next six to nine months, should look into how much it would cost them to remortgage now – and consider locking into a new deal. 

Most mortgage deals allow fees to be added the loan and they are then only charged when it is taken out. By doing this, borrowers can secure a rate without paying expensive arrangement fees.

What if I am buying a home? 

Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. 

Home buyers should beware overstretching themselves and be prepared for the possibility that house prices may fall from their current high levels, due to  higher mortgage rates limiting people’s borrowing ability.

How to compare mortgage costs 

The best way to compare mortgage costs and find the right deal for you is to speak to a good broker.

You can use our best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.

Be aware that rates can change quickly, however, and so the advice is that if you need a mortgage to compare rates and then speak to a broker as soon as possible, so they can help you find the right mortgage for you.

> Check the best fixed rate mortgages you could apply for