Month-on-month rental prices fell in most regions, the latest data from Propertymark shows, indicating a clear seasonal slowdown as demand eases after Christmas.
In January, the regions that stood out most were the Northeast, where rents fell by 10%, followed by the Southwest, where prices fell by 8.1%.
Rents in Yorkshire and Humberside also fell by 7.4%, while Wales saw prices fall by 6.1%.
The current average rental price in the UK is £1,432.
Propertymark also found that annual salary requirements are showing only modest movement overall, with several regions still seeing an increase in the income needed to rent.
London stands out as an exception, with a 3.7% month-on-month increase in average rents, despite a slight annual relaxation of salary requirements.
Data shows that the market remains increasingly fragmented, with national averages masking sharp local shifts.
Proprietary mark President of the Association of Residential Letting Agents Megan Eighteen says: “January data indicates a rental market that is clearly responding to seasonal demand dynamics, with widespread month-on-month rent reductions indicating greater price sensitivity among tenants and a softening of competition in many regions. However, this short-term easing must be seen in context.”
“Despite notable monthly declines, the annual salary required to secure a rental property has remained largely stable or increased in several areas, underscoring that affordability pressures remain deeply entrenched. Structural issues, particularly limited supply, continue to limit the extent to which falling rents can provide sustainable relief for tenants.”
“As a result, January’s figures reflect a pause rather than a turning point. While renters in some regions may experience temporary breathing space, sustainable improvements in affordability will depend on increased rental stock and more balanced supply and demand conditions, not just seasonal fluctuations.”