View the article online at http://citywire.co.uk/money/article/a605839
Rents up again and almost back to record high
The price of renting in England and Wales rose for the third consecutive month in June to £718 per month.
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.
|Region||Rents June||Monthly change||Annual change|
|East of England||£743||1.40%||1.80%|
|Yorkshire and The Humber||£535||0.80%||1.70%|
|England and Wales||£718||0.90%||2.40%|
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.
News sponsored by:
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
Andrew Friend, acting co-manager*, and Marcus Langlands Pearse, co-manager of the Henderson UK Property Unit Trust (HUKPUT), provide an overview of the key risks and opportunities for the UK commercial property market.
More about this:
More from us
What others are saying
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.
by Gavin Lumsden on Apr 16, 2014 at 15:17