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News Article

"In May, you MUST give your Tenants the Renters Rights Information Sheet or

YOU RISK  - £7,000 FINE  PER TENANT PER PROPERTY."READ MORE

Landlords Face Financial Crisis as Rents Decline for Fifth Consecutive Month

9th Jan 2025

According to a PropTech service rents in England dropped once more in December, marking the fifth consecutive month of falling rental costs.


Image credit: iStock

This decline comes after a summer of unprecedented price increases. On average across the board, rents in December dropped by nearly 2% from the previous month, resulting in a substantial 19% decrease compared to the average rents recorded in July 2024.

Despite the downward trend, December rents are still over 3% higher compared to the previous year, indicating a continuous increase in prices, albeit at a slower rate than earlier in 2024. December, typically being one of the slowest months for new tenancies, saw void periods remain steady compared to the previous month.

In December 2024, the average rent across England was £1,185, compared to £1,147 in December 2023 which represents a year-on-year increase of 3.3%.

The South East experienced the most significant year-on-year regional change, with rents increasing by 5.7% compared to December 2023, conversely, the North East saw the smallest change, with rents rising just over 2% year-on-year.

December's 3.3% rent increase is the lowest year-on-year rise noted in 2024. In stark contrast, August rents surged by 10% compared to the previous year.

December marked the fifth consecutive month of declining rents, with average rents for new tenancies in England falling from £1,205 in November to £1,185 in December, a decrease of 1.7%.

Throughout 2024, the highest rents were recorded in July, with average monthly prices reaching £1,470 per property, consequently, December 2024's rental averages were a significant 19% lower than those in July.

January 2024 saw the lowest rental prices of the year, averaging £1,154.

Void periods in December remained unchanged month-on-month at 21 days across England which marks a slight increase from December 2023, when void periods averaged 20 days.

In contrast, July 2024 not only had the highest rental costs of the year but also saw void periods at just 11 days, highlighting the peak demand during this period.

December marked the fifth consecutive month of declining rents, with average rents for new tenancies in England falling from £1,205 in November to £1,185 in December, a decrease of 1.7%.

Throughout 2024, the highest rents were recorded in July, with average monthly prices reaching £1,470 per property. Consequently, December 2024's rental averages were a significant 19% lower than those in July.

January 2024 saw the lowest rental prices of the year, averaging £1,154.

Void periods in December remained unchanged month-on-month at 21 days across England. This marks a slight increase from December 2023, when void periods averaged 20 days.

The West Midlands experienced the most significant reduction in void periods during December, dropping from 24 days in November to 18 days.

In the North East, voids also decreased, moving from 23 days to 22 days. Greater London remained consistent with an average of 18 days. wheras void periods lengthened in the East Midlands, North West, South East, and South West.

William Reeve, chief executive of the Prop Tech firm, comments: “After the fireworks of the summer, the rental market ended the year in a far more subdued fashion. We’ve now seen five months of decreasing prices and year-on-year rental averages are currently tracking far lower than figures seen during 2024 as a whole, although this should be viewed in the context of the record-breaking highs set during July and August.”


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"In May, you MUST give your Tenants the Renters Rights Information Sheet or

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