Good News for Landlords as Average Rents Increase again

22 October 2012 Categories: News

Good News for Landlords as Average Rents Increase again

According to the latest report from LSL Property Services, the average rent in England and Wales increased by 1.1% between August and September this year. This significant increase means the average rent now stands at £741, up from £734 in August, and the total increase for the year is now 3.2%.

London, as would be expected, outdid most of the rest of the country, with an average rent increase for the month of 1.7%. This puts the average rent in the capital up to £1092 per month, and the total annual increase at an impressive 6.2%.

Commercial director of LSL Property Services, David Brown, commented, “Rents have risen consecutively for half a year as tenant demand strengthens on the back of a historically subdued mortgage market,”

However, every pound monthly rents go up by is another pound that renters can’t save for a deposit for their first home. This is lengthening their stay in rented accommodation, and increasing competition in the private rented sector.”

Mr Brown went on to say. “Rising rents may be a source of financial pain for many tenants, but they are underpinning annual returns for landlords, increasing the appeal of entering the buy to let sector. Yields are climbing steadily, comparing favourably with other forms of investment, and in the context of historically low mortgage rates, the key ingredients are in place for lucrative long-term investment.”