For the first time ever, asking price rents have risen in every region in England and Wales.
The increasing rents were recorded in the latest buy-to-let index published by LSL Property Services. The research is based on 18,000 properties on their books.
Last month the average rent in England and Wales had increased by 0.7% to £718 per month now the record high for rental prices.
The annual rental inflation is now at 4.3%, making the average rent £29 per calendar month higher than in September 2010. The average yield in September rose from 5.2% to 5.3%.
With rents rising in every region, it meant that many areas hit a record high – London, the South-East, Yorkshire and the Humber, the East of England, Wales and the East Midlands are now experiencing the highest rents to date.
Rents increased the quickest in the South- East and the East Midlands. The West Midlands and the North East saw the smallest increases.
However, to no surprise the London rents have continued to increase more considerably than any other region increasing by 5.8%.
Martin & Co Leatherhead have seen similar inflation in rents over the last few months with an oversupply of tenants looking.
David Brown, commercial director of LSL, said: “It’s not just a regional phenomenon, localised to London and the South-East – rents are rising across the board. In areas of the highest demand, such as the capital, competition is driving up rents at a faster rate than elsewhere – but no region has been immune to the growing demand for rental homes from frustrated buyers.”
Buying a home is now the cheaper option on a monthly basis, however renters cannot get over the large hurdle of saving for the huge deposit requirement. The competition among prospective tenants is unlikely to diminish without a substantial growth in the supply of rental properties available on the market.
A number of large international companies in the North Surrey area mean a continuing demand for accommodation.
The increase of rents has proven good news for many homeowners that need a financial solution with the sales market at an all time low.
Talk to Martin & Co Leatherhead we can provide you with expert advice and local knowledge on your rental market and the processes involved with letting out your property.
Telephone 01372 360281