Tenant demand sees average rents reach record high
Landlords continue to be the happiest players in the property market as average rents for England and Wales reach £701 per month.
According to the latest Buy-to-Let (B2L) index from LSL Property Services, the annual rate of inflation for rents has increased by 4.1% (£28) between June 2010 and June 2011.
Unsurprisingly, London has the highest average with monthly rents now in excess of £1000. There were also significant increases nationwide with the West Midlands (2%) and East of England (1.6%) bearing the brunt.
Three regions, however, did see a rent decrease; the East Midlands (0.5%), South East (0.2%) and Yorkshire and The Humber (0.1%).
A Glass Ceiling?
At present, it is hard to see rents plateau. If anything, they will increase further. David Brown, Commercial Director at LSL Property Services agrees:
“In the long-term, there is an even smaller chance of a significant slowdown. Excess housing demand will be driven into the private rental sector, pushing rents up further.
“Tenant demand continues to reach ever higher peaks - and there simply isn’t enough rental property coming onto the market to match it.”¹
Tenants currently find themselves outnumbered with one room available for every five tenants. This is largely because of a lack of new homes, largely because mortgage finance remains far from reach.
If you have a property to let, there is no better time to do so. The market is ripe and our Buy-to-Let remortgage fees are just £299. Contact us on 0845 373 3737 for more details.
Content correct at time of publication