The average UK rent fell by 1.6% to £684 - the lowest average since July 2010, figures from LSL Property Services show.
Despite the fall, the cost of renting is still well up on the same point 12 months previously, with average rents rising by 3.8% between December 2009 and December 2010.
The most marked fall was seen in Wales, where rents fell by 2.6%, while average rents in the south east and London declined by 2.5% and 2.3% respectively.
Not all areas saw declines, however, as there were increases of 2.2% and 1.7% respectively in the west midlands and south west.
Click here for the full story Rents fall for the first time in 11 months
Comment
We believe that this fall will prove to be a temporary blip in the general trend of rising rents. Landlords should be more worried by the sharp rise in rent arrears which is likely to increase over the coming months as the impacts of the recession continue.
It seems clear that Landlords with tenants on Housing Benefit are finding that as tenants struggle financially many tenants chose to spend LHA rather than pay their rent. Increasing financial pressures on working tenants are bound to see more tenants either late with their rent, or not paying their rent at all. This problem is likely to increase as the number of redundancies rises.
Landlords need to take every precaution to ensure that their rents are paid on time and in full. One solution is Rent on Time which guarantees that your rent will be paid on time every month, whether the tenant pays or not. Click here for more information Rent on Time
