Average rents in Bristol have fallen by 3.8% year-on-year, with rental properties taking longer to let since the Renters’ Rights Act came into force, according to Rentaroof.
Rentaroof has warned that the slowdown may be temporary, as similar reforms in the Netherlands led to fewer rental homes after landlords exited the market.
The average monthly rent in Bristol now stands at £1,464, down from £1,522 last year.
Flats saw the biggest drop, falling by 3.6% to £1,514, while house and room rents increased slightly by 0.6%.
Bristol City Centre recorded the sharpest fall at 10.9%, with its high concentration of flats amplifying the decline.
Horfield remains the most expensive district at £1,802, with rents falling by only 1.6%.
Fishponds saw rents drop by 8.7% to £1,437, Bedminster fell 8.5% to £1,171, and Easton dropped 5.2% to £1,103.
Rental properties are now taking longer to let, with the average time on the market rising from 25 days to 31 days.
Redcliffe and Montpelier have the fastest-moving rentals at 18 to 19 days, while Bristol City Centre averages 43 days.
Southville and Northville let in 23 and 41 days respectively.
Student-friendly listings now account for 36.6% of Bristol’s rental supply, above the UK average of 31.1%.
Jasper de Groot (pictured), CEO of Rentaroof UK, said: “Britain is heading in the same direction as the Netherlands when it comes to rental reform, and the warning signs are already there.
“In the Netherlands, similar changes led to a sharp reduction in rental supply as landlords and investors exited the market.
“Around 12.5% of the total private rental stock, equating to more than 80,000 homes, were eventually sold off and removed from the sector.”
de Groot added: “In Bristol, we’re already seeing rents soften and properties taking longer to let, particularly in flat-heavy areas such as the City Centre.
“We also expect landlord behaviour to change significantly under the Renters’ Rights Act.
“In high-demand areas such as Redcliffe and Montpelier, landlords are likely to increase advertised rents upfront because they will no longer be able to rely on above-asking bidding to achieve higher final rents.”
He said: “The bigger concern is supply. International evidence suggests rental stock is likely to decline over time if landlords continue exiting the market.
“The latest English Private Landlord Survey already shows 31% of landlords are planning to reduce their portfolios, suggesting supply pressures could intensify over the coming years.
“If supply continues to tighten, today’s softer conditions could eventually reverse and place upward pressure on rents again.”