Sydney rents drop for first time in 12 years, Domain report finds

PHOTO:  The median rent for a Sydney house dropped to $540 a week. (ABC News: Liz Pickering)

PHOTO: The median rent for a Sydney house dropped to $540 a week. (ABC News: Liz Pickering)

Sydney is no longer the nation's most expensive capital city to rent a house according to a report showing rental prices dropping for the first time in 12 years.

Canberra's house rental rates have surpassed Sydney after the average cost of renting a house in the NSW capital dropped 1.8 per cent in the last year, according to the Domain Rental Report.