House rental prices in the North East have fallen for the first time in five years, signalling a potential turning point in the region’s property market. New data shows average rents in the area have dropped by 1.8% compared to the same period last year, breaking a long-running trend of consistent annual increases. The fall comes amid signs of slowing demand from tenants and a rise in the number of properties available to let.
Analysts suggest the shift may be partly driven by a cooling in the wider UK rental market, with many tenants increasingly constrained by the cost-of-living crisis. As household budgets remain under pressure from high energy prices and food costs, more renters are choosing to stay put rather than move, reducing competition for available homes. In addition, a number of landlords who had previously left the sector during recent years of tougher regulation are now returning, swelling the supply of rental properties.
The North East has long been one of the more affordable regions in the country, but in recent years it has seen rapid rent growth, particularly in urban centres such as Newcastle, Sunderland, and Durham. Rising rents have been fuelled by a shortage of suitable housing, strong demand from students and young professionals, and investors drawn to the region’s comparatively low property prices. The latest dip, though modest, has sparked speculation over whether the market is entering a period of correction after years of relentless upward movement.
Some property agents in the region say they have noticed a slight softening in the pace of inquiries, with more tenants negotiating on rent and landlords becoming more flexible in order to secure long-term occupants. While the decline may provide some relief for renters, experts warn it could be short-lived if economic conditions improve and demand rebounds. Others believe the current trend could continue if higher interest rates and ongoing regulatory changes discourage speculative investment in the buy-to-let sector, keeping rental growth subdued.
Despite the drop, average rents in the North East remain significantly higher than they were five years ago, leaving affordability a concern for many households. For now, the easing in prices marks a rare break for tenants in a market that has been increasingly challenging to navigate — and one that many will hope is the start of a more sustained period of stability.
If you are considering renting out your home and would like expert advice, contact Spartan Property Estate Agents at lettings@spartanproperty.co.uk or call 0191 470 1815.