Rents on new tenancies remained flat or dropped marginally over the three months to November in 10 out of the 12 UK regions compared to the three months to October, according to research from HomeLet.

The latest index data shows that the average UK rent, excluding London, on a tenancy signed during the three months to November was £743 a month, down 0.7 per cent on the previous three month period. In Greater London the average rent was £1,544, down 1 per cent.

Only two regions saw rents rise over the three months to November. In Yorkshire and Humberside, rents on new tenancies rose by 0.8 per cent to £626 a month, while in the East Midlands rents were 1.2 per cent up at £635 a month.

The study by Homelet also revealed that 91 per cent of landlords do not plan to increase rents in the next six months, while over the next 12 months, just around a third of landlords are planning to increase the amount they charge on their homes.

“The research reveals the vast majority of landlords enjoy strong relationships with their tenants and are keen to keep them,” said Martin Totty, Barbon Insurance Group’s Chief Executive Officer. “Just 4% said they were unhappy with their current tenants, while 18% said high tenant turnover was the most stressful part of being a landlord, more than cited on any other single issue.”

“Being a landlord is a long-term investment and attrition of tenants is not something landlords desire; our own clients tell us they would rather retain a good tenant over the longer period than seek additional income,” he added.

Despite the recent dip in rental values, separate data released by Office for National Statistics (ONS) reveal that rental costs across the UK have increased by an average of 36 per cent since 2008.

Various housing commentators point to the lack of housing as being among the primary reasons for the sharp increase in rents, as many people have little alternative but to turn to the private rented sector for accommodation.

Neal Hudson, Associate Director at Savills Research, said, “The financial realities of the housing market mean that many people will be unable to access homeownership.

“Deposit requirements will remain a substantial barrier to prospective first-time buyers in many parts of the markets, leading to an increase in numbers renting.

“We need to build more homes across the full spectrum of tenures, including private rented, and encourage large-scale institutional investment.”

Campbell Robb, Shelter’s Chief Executive, is calling on the Government to build significantly more affordable homes to help alleviate the growing housing crisis.

“After decades of failure to deliver enough homes the government’s latest proposals to get Britain building are encouraging, but to make them work in the long run they must prioritise investment in building genuinely affordable homes that ordinary families can actually afford to rent or buy,” he added.