Wales was the only region to see rents decline annually in June as rental growth remained below the rate of inflation, referencing firm HomeLet says.
The firm’s figures for June show rents were up 1.8% annually to £924 a month on average, below the current inflation rate of 2.4%.
Only Wales saw a yearly fall, down 0.8% to £603 a month while growth was flat in the south-east
Northern Ireland showed the highest year-on-year increase, up 5.1% to £641 a month.
On a monthly basis, rents were up by 0.5%, growing in 10 out of 12 regions and led by a 4.1% increase in the west midlands to £689.
Welsh rents also fell on a monthly basis by 0.2% to £603, while the north east saw a 0.8% drop to £529.
Martin Totty, chief executive of HomeLet, said: “Over the next quarter I think there are a lot of factors at play in the private rented sector in both demand for and supply of properties impacting average rents.
“We don’t yet know if the Government’s squeeze on private landlords via taxation changes and more regulation will discourage their continued participation in this important sector and begin to reduce supply.
“Any constriction of the number of properties available for rent can’t be good news for tenants if all it achieves is to increase rents.
“However, the demand for rental properties remains strong and will continue in the near term, which has to be positive for property owners.
“If some landlords do choose to sell up there are many who will see that as an opportunity to improve their yields as demand still exceeds supply, a point many commentators have made via the many consultations that the Government has held.”