Rental costs in Yorkshire & Humberside have seen a dip in January, decreasing by 1.7%, a new report indicates.

The HomeLet Rental Index, a monthly analysis that provides an overview of the region's rental costs, suggests this fall could be a hopeful start to 2024 for tenants.

Despite the recent dip in rental prices, fears linger that these short-term gains might be outweighed by long-term struggles.

In the last year alone, rental prices in Yorkshire & Humberside surged by a staggering 8.23%.

Since 2021, there has been an increase of over 16%, equating to more than an additional £115 per month.

The current rental landscape implies that tenants in Yorkshire are now spending almost 30% of their monthly wages on their rents, a rise of 3.5% from the last year, according to HomeLet, the country's leading tenant referencing and specialist letting insurance company.

Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, shared his views on the data.

He said: "The New Year starts with restrained optimism from us, as our records show a minor decrease in monthly costs in Yorkshire & Humberside."

Across the UK, rental prices have fallen, except in the East Midlands.

Tenants in the capital are currently paying an averaged £2127pcm, a drop of almost £50 per month since November.

Halstead further commented: "Although these figures can be viewed as a short-term win for tenants, let’s not kid ourselves that this represents anything resembling a breakthrough.

"Monthly rents increased by 8% in the UK in the matter of a year, and have soared nearly 20% since 2021."

The CEO continues, "Unless we see some dramatic changes, 2024 looks set to bring more of the same.

"Landlords will have to do battle with a familiar array of struggles, including a lack of stock, rising costs and prohibitively expensive buy-to-let mortgage rates."

With the country grappling with high inflation and financial crises, Halstead suggests that the possibility of rents dropping to pre-COVID-19 levels is unlikely.

He finished by expressing hope for more affordability in the sector, in favour of both tenants and landlords.

A comprehensive breakdown of rental increases, variances and rent-to-income ratios can be found on the HomeLet website.

It provides in-depth insight into the UK's rental market based on recent data trends.