North-west experiences the worst decline in rental prices

Thursday, 26 February 2009 11:36 AM

The north-west has experienced the worst decline in rental prices in Q4 of 2008, according to the FindaProperty.com Rental Index released today.

Excess supply and falling rents was a pattern replicated across most of the UK regions, with the north-west seeing the worst decline; where annual rental prices were down by 14.3 per cent, to £592pcm from £645pcm.

The speed of fall accelerated in February 2009 for the region, with prices plunging -8.2 per cent on the previous month.

This fall has been caused by a huge increase in available stock, especially in the Manchester area, which has seen supply increase by 45.9 per cent over the past year, now accounting for 57.8 per cent of the available rental property in the whole of the North West area.

Andrew Smith, head of research at FindaProperty.com, said: "The figures show no clear national picture with each region reacting to local market forces.

"Most regions have suffered from an annual fall in asking prices - between 2 per cent and 6 per cent - however some areas are now starting to see some moderate rental growth.

"The notable exception is the north-west, which has seen significant falls in rental asking prices caused primarily by a large increase in the volume of stock available.

"The majority of these properties are in the Manchester area and the data supports the widespread belief that a large number of the new build apartments created in the city centre over the past five years remain empty."

Rental prices in Greater Manchester stood at £582pcm, down from £712pcm in February 2008. In Merseyside the change was less dramatic, and actually increased year on year, from £609pcm in February 2008 to £648pcm in February 2009. This increase could have been due to Liverpool's status as Capital of Culture in 2008.

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• england north west