The drop can be largely attributed to a 1.07% decrease in average rents in London.
Seven of the eleven regions examined experienced minor rental price increases throughout January but only the North West registered more than a 1% increase.
The average advertised rent now stands at £972, £35 more than January 2012.
Robin King, director of Move with Us, said: “Average rental asking prices have remained stable throughout January, and indicators suggest that they will remain fairly stable into the next quarter.
“Minimal evidence of demand pressures, combined with stable supply, suggests that the market has reached an equilibrium point.”
King said the supply of advertised properties remains stable at around 180,000 as landlords appear more interested in maximising occupancy and avoiding arrears than increasing rents
“On the demand side, there has been little movement in average wages, while increases in home loan availability are allowing more people to enter residential markets.
“A result of this is house price inflation, which combined with on-going rent stability will start to erode rental yields.”
