Summer Surge Pushes Average Rent to All Time High

21 August 2012 Categories: News

Summer Surge Pushes Average Rent to All Time High

The latest monthly buy to let index created by LSL Property Services has shown that the average rent in England and Wales rose for the fourth month in a row during July to reach an all-time high of £725. Eight of the ten regions that make up England and Wales experienced an increase, with the South East seeing a 2.2% rise during the month of July alone.

The welcome summer surge is being attributed to recent graduates entering the workforce, thus adding demand to an already overstretched private rental sector. The record high rents are predicted to last for the upcoming months, which is good news for landlords and potential investors alike.

Director of LSL Property Services, David Newnes, commented on the figures from July’s Index, saying, “With more tenants on the move, alongside long-term underlying demand, fierce competition for properties is enabling landlords to increase rental prices to new highs.”

The same index also revealed however that rental arrears increased for the second month in a row, although only by 0.1%. At the end of July, 9.3% of rents remained unpaid, which, Mr Newnes commented, is an unfortunate aspect of the present market, “With the economy still in recession, and rents climbing to a new record high, the minority of tenants experiencing difficulty in meeting the monthly rent cheque on time is steadily climbing.”