It marks the fourth consecutive monthly drop and brings the cost to rent down to the lowest level since July 2012, however there is still a long way to go.
The average cost to rent is still 3.3% higher than the same period last year and with the rising cost of living due to high inflation a small drop is unlikely to help much.
LSL Property Services Director David Newnes, said,
“The rental market has not yet burst into life, but we are seeing more vitality than last year’s timid February market, when tenant demand was impacted by the rush to buy homes before the stamp duty deadline,”
“In the longer-term, the supply of rental homes will have to increase considerably to prevent monthly rent rises when the rental market re-enters its traditional peak season.”
Last month the Council of Mortgage Lenders (CML) released data which showed the buy-to-let market has hit it’s highest level for 4 years.
They revealed that £16.4 billion was been borrowed in 2012 for new buy-to-let properties which accounted for 11.5% of mortgage lending.
Paul Smee, the CML director general, said,
“Buy-to-let is benefiting from strong tenant demand, which is likely to continue.”
“Landlords who can demonstrate a strong track record are in a good position to expand their portfolios.”
A separate survey by Axa found a quarter of the UK would have to make sacrifices just to be able to pay their rent, such as moving house or selling their car.
Campbell Robb, Shelters chief executive, said,
“This is proof that the growing cost of renting is hitting families where it hurts, forcing them to make impossible choices about what they can cut back on next.”
Yesterday it was also announced that the Funding for Lending Scheme had helped to increase mortgage lending further as the housing market shows signs of recovery.
After a drop in manufacturing output earlier in the week some analysts have said a triple dip recession in likely, which could heavily impact the housing market.