Rents up again and almost back to record high

Rents in England and Wales increased 0.9% in June – the third monthly rise in a row.

The average rent in England and Wales is now £718 a month, according to LSL Property Services, which is just shy of the £720 a month record high seen in October.

Source: LSL Property Services

Every region but one – the South West – saw rents rise last month. Wales reported the largest rise, with rents up 2%, followed by the North West and West Midlands, both with increases of 1.7%. Rents in London, meanwhile, hit yet another new high at £1,047 a month.

Over the year rental prices are up an average of 2.4%. London continues to boast the fastest annual rental growth with prices up 4% compared to the same period last year, followed by the South East with rents up 3.6%. Only the East Midlands has seen the price of rent fall in the last twelve months, with a modest decline of 0.1%.

David Newnes, director of LSL Property Services, said: ‘The sheer weight of tenant demand continues to push up rents across the country’.

Higher rents and the growing cost of living is making it harder for tenants to save enough for a deposit to buy, while tight lending criteria for mortgages makes it difficult for first time buyers to get a foot on the property ladder, he explained.

‘It’s no surprise to see the private rented sector swelling by 262,000 households a year.’

The number of people unable to pay their rent on time or at all also increased in June from 8% of all rent to 9.2% – amounting to a total of £289 million.

‘The monthly rise highlights how crucial it is that landlords strike a balance between securing the best possible rent and ensuring prospective tenants will be able to meet payments in the long‐term, rather than leaving the investor at risk of arrears on their property’s mortgage,’ Newnes warned.