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UK New-Let Rents Fall for First Time Since 2020

Falling mortgage rates have eased pressure on landlords, leading to the first annual drop in new-let rents.

Overview

  • Average new-let rents in Great Britain slipped 0.2% year-on-year in July to £1,373 per month, the first annual decline since August 2020.
  • Greater London recorded the biggest fall with rents down 3.0% after seven consecutive monthly drops, while the North East saw a 0.3% decline to £850.
  • Renewal rents rose to an average of £1,290 per month, narrowing the gap with new-let levels to £83, the smallest difference in four years.
  • Five interest rate cuts over the past year have reduced mortgage costs for landlords, dampening the pace of rent inflation on new tenancies.
  • Rent pressures remain uneven, with the East Midlands, West Midlands and South West still posting annual increases.