Rents have dipped in four main centres, and risen in others. Renting is now two and a half times cheaper than buying a home and the best rental deals are in Christchurch, where rents are dropping, says John Hartevelt in The Christchurch Press.

The typical weekly mortgage payment is said to be $745, which included additional costs - much higher than the national median rent of $305 a week.

New figures prepared by Crockers Market Research show Christchurch is the only one of the four main centres where rents are falling.

Rents peaked in Christchurch in July last year, rising from an average $301 in January to $313 in July 2007 for a three-bedroom home.

From January to June this year, a three-bedroom weekly rental in Christchurch fell by a modest $2.

In Dunedin, Wellington and Auckland, however, rents were up an average $26, $24 and $13 respectively over the same period.

Progressive Property manager Michelle Williams, who markets properties in Riccarton and the wider area, said she was cutting rents across the board to try to entice tenants in a flooded market.

"Because the sales have dropped so much, a lot more houses are on the market for rent the rental market is a bit flooded really," she said.

The Reserve Bank will tomorrow announce its latest review of the official cash rate (OCR), which drives mortgage interest rates.

A cut in rates could provide stimulation for a cold housing market, which would reduce the large stock of rental properties.