Rental asking prices across Britain declined in January as the lettings market began to stabilise, research published by Moves with Us has revealed.
As Property Wire reports, the study explained the main reason for the fall was because of the 1.07 per cent average decrease seen in London, while drops in Yorkshire and Humber also played their part in the overall downward trend.
Indeed, the nationwide decline was in spite of the fact that most regions recorded increases in rental asking prices last month, with the north-west seeing a jump of 1.31 per cent.
The south-west was also a strong performer, while regions such as Wales and the south-east saw small fluctuations that are indicative of a period of stability in the market.
"Rental asking prices have remained stable throughout January, and indicators suggest that they will remain fairly stable into the next quarter," said Robin King, director of Move with Us.
"Minimal evidence of demand pressures, combined with stable supply, suggests that the market has reached an equilibrium point.
"The supply of advertised properties remains at around 180,000, as landlords appear more interested in maximising occupancy and avoiding arrears than increasing rents."
According to the study, the prediction is that the rental market will experience similar conditions this month, while London rents are forecast to fall at a slower rate and those in Yorkshire and Humber are expected to stabilise or return to growth.
As the lettings market seems to be equalling out, it's important that investors keep a close track of their budgets in order to improve their chances of maximising profits.
That means investing in the appropriate landlord insurance policies and working with tenants to keep any arrears to a minimum, as well as thinking carefully about location and demand when looking to expand their portfolios in the coming months.