LSL Property Services, a lettings agent network which owns the Your Move and Reeds Rains chains, said that on an annual basis, private rents are now 2.1% higher than in September 2012. On average, rents are now GBP13 higher per month compared to October 2012. The company based its findings on rents achieved for 20,000 properties.
Seven out of 10 regions across England and Wales recorded new highs for private rentals. The largest annual rise was in London, where rents rose by 4.4% over the year, an average of GBP1,141 per month. Wales saw a 3.1% increase that has pushed monthly average rents to GBP.573. The only region to see a drop in rents was the East of England, where private rentals fell by 1.4% over the year and currently are typically GBP739 per month.
The rises reflect a surge in rental activity, despite measures being taken by the UK Government to enable people to get on the housing ladder. The new Help to Buy scheme has seen several mortgage lenders giving more loans to first-time buyers. These lenders include Halifax, Bank of Scotland, Royal Bank of Scotland (RBS) and NatWest.
David Newnes, director of LSL Property Services, commented: “Higher rents in almost every region show that, despite Government schemes, buying a first home is still a difficult aspiration.
“This is not only down to low salary growth, but also a general shortage of supply – which is the underlying reason why homes are getting more expensive.”