Rents in some areas across the UK are beginning to stabilise as oversupply starts to come to an end, a report has revealed.

According to a survey by the Association of Residential Letting Agents (Arla), rents have dropped by only two per cent in areas away from London and the south east during the fourth quarter of 2008.

Ian Potter, Arla head of operations, said this could be due to a fall in the number of new properties on the market.

"The oversupply of new build flats in some areas may be coming to an end as local authorities, housing associations and bargain hunters take up the slack,"he suggested.

Average monthly rents for houses now range from just over £3,000 in parts of London to £900 in other parts of the UK.

The study also revealed that the average value of houses in the rental market had fallen by 8.3 per cent in the past year, with nine out of ten investment landlords now "marking time"by neither selling nor buying property.

According to the Chesterton CEBR House Price Poll of Polls for November, the average price of a residential property in England and Wales has dropped by 11.7 per cent in comparison with last year.ADNFCR-2002-ID-18921931-ADNFCR

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