Rent rise is fastest for a year, says LSL

 
Lettings boards Recent graduates have added to demand for rented property, according to the survey

The cost of renting a home rose at its fastest rate in a year - with the average tenant paying £713 a month, a survey has said.

Tenants paid 1.2% more on average to rent a property in the UK in August than they did in July, according to LSL Property Services.

The cost rose quickest in Wales and the South East of England in the last month.

Tenant arrears increased for the first time since April, the survey added.

"We are in the thick of the busiest time of year for the rental market, and red-hot demand for properties is driving rents up at their fastest monthly pace in the last 12 months," said David Newnes, LSL's estate agency managing director.

"Recent graduates moving for their first jobs have further exaggerated the long-term and growing demand from frustrated buyers.

"In the last two years, average rents have risen by more than £50 a month."

Buyer frustration

Mr Newnes said he expected further rent rises in the coming months.

Start Quote

Marc Mclean

Renting at the moment is affordable, but lots of people say that renting is dead money”

End Quote Marc Mclean Tenant in London

This is bad news for people like Marc Mclean, who has been renting since 1992 and is hoping to buy his first property.

He said he had saved up £20,000 for a deposit to buy a home, but was now getting mixed messages as to whether it was a good time to buy.

"I am 38 and I want to get a mortgage paid off by the time I retire," said the NHS service manager, who lives in north London.

"Renting at the moment is affordable, but lots of people say that renting is dead money. I am 70% sure I want to buy."

He said his concern was that his property would fall in value if he bought it in the current economic climate.

The survey from lettings agent LSL, which owns Your Move and Reeds Rains, suggested that London had seen the biggest rent rises in England and Wales in the last year, rising by 6.6%, followed by a 6% rise in the West Midlands and a 4.3% increase in the North East of England.

The only fall was in Yorkshire and the Humber, where the cost of renting a home dropped by 0.5% in the last year, it suggested.

Tenant arrears increased for the first time since April, with 10.7% of all UK rent unpaid or late by the end of August. This was up from the 9% of rent unpaid or late in July.

However, Mr Newnes said there was often a short-term blip in tenant arrears in August, as summer holiday costs squeezed family finances.

 

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  • rate this
    -1

    Comment number 382.

    I am sure there are plenty of bad landlords,counterbalanced by bad tenants. Good landlords with good properties will eventually get good tenants,but with a price that reflects the situation.

  • rate this
    +12

    Comment number 372.

    It also means you get a house paid for by other people who work all day whilst you do absolutely nothing.

    Whilst these people pay rent they can't get a deposit together.

    After years of renting they get nothing in return for a greater price than they would pay if they were paying a mortgage.

    Meanwhile, BTL landlord gets his or her 2nd/3rd etc home paid for by hardworking people.

  • rate this
    -16

    Comment number 370.

    353.Piggyback

    I couldn't dissagree with you more.

    People have a right to make money from the property market. And people have the right to use their home as an investment. I see nothing wrong with both of those things. Buy to let should be encouraged, so that familes who can afford extra proterties, can have an extra income.

  • rate this
    +11

    Comment number 362.

    i get a little tired of so called speculators and property investors slapping themselves on the back for being prudnet and investing in property. Prudent perhaps, lucky..almost certainly. As someone in their mid 30s who runs a business (which exports!) we need to refocus the economy away from bricks and mortar (we can't export that) invest in UK PLC landlords!!

  • rate this
    +7

    Comment number 342.

    Some friends were desperate to do self build. Husband a surveyor. Every time they tried to buy a plot of land they were outbid by developers!
    #326 Boilerbill - in the 80s housing association tenants were given cash incentives to buy on the open market. It just meant they outbid other buyers and pushed prices up. I always argued against the sale of council houses. The outcome was obvious!

 

Comments 5 of 19

 

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