Annual declines in London rents have pushed overall growth rates down across the UK, data from tenancy referencing firm HomeLet shows.

It says newly agreed prices last month fell 0.3% on an annual basis to £908, the same rate recorded in May when new rents declined for the first time since December 2009.

London continues to see annual declines, falling 2.6% in the year to June at £1,524, a long way from the 7.1% rental inflation figure recorded this time last year.

When you take London out of the equation, new rents actually were up 0.5% annually at £757.

Only five of the regions actually saw a decline in new annual rents, with the East of England, South-East, Yorkshire & Humberside and North-East also experiencing annual drops.

On a monthly basis most regions saw increases, with just the East Midlands, South-West and East England recording drops.

Martin Totty, chief executive of HomeLet, said: “It is now a full year since rental price inflation in the UK peaked at 4.7%, since when we’ve seen progressively more modest rent increases and, over the past two months, falls in some areas of the country.

“June’s figures are the first indication that this trend may now be beginning to flatten out, but it’s too early to say this with any certainty – the next few months will provide crucial intelligence on the direction the market is taking.”

Separately, the Local Government Association has attacked private rents for being too high, saying that one in seven tenants spends more than half of their income on rent.

Calling on central Government to provide more support for the building of homes that families can afford, at no more than a third of household income, the LGA has also found that just 2% of home-owners spend the same proportion of income on their mortgage.

Using ONS and Valuation Office Agency data, the report found private rents currently average £852 across the country – almost £100 more than HomeLet’s latest average figure.

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