by Calculated Risk on 11/17/2008 07:40:00 PM

From The Times: House rents fall as unsold properties flood market (hat tip James)

Rents fell for the first time in five years between July and October as home-movers flooded the rental market with properties that they could not sell.
...
It is the first time since 2003 that the gauge of rental yields has turned negative. James Scott-Lee, of RICS, said: “Many vendors have been forced to become amateur landlords, creating an inevitable downward pressure on rents.”

Usually in a recession some people double up with friends or family - and that puts downward pressure on rents. This time there is also a huge number of "amateur landlords" renting out their unsold properties, and that is additional downward pressure on rents.

This is also happening in the U.S., see: Apartment Market Weakens