Rents rise to £750 a month

Rents rise to £750 a month

Rents are still increasing at a faster rate than salaries and the average rent is now a hefty £720 a month.

However, the rate of increase has slowed, according to a survey by LSL Property Services, the owner of Your Move and Reeds Rains estate agencies.

Rental costs have increased for nine consecutive months, but in October they were just 0.2 per cent higher, their smallest increase since February.

More people are turning to renting because they are unable to afford the large deposits demanded by mortgage lenders and the subsequent shortage of rental properties means that rents have risen substantially.

In October, the greatest increase in rents was seen in the south-east of England, where they increased by 1.5 per cent compared with September.

However there was good news for tenants in the north-east and south-west of England where they fell by 1.4 per cent.

Annual rental inflation slowed to 4.1 per cent in October compared with 4.3 per cent in the previous month, according to LSL’s survey.

David Brown, LSL’s commercial director, said: “The recent increases are likely to continue to level out in the run up to Christmas - traditionally a slower time for the market.

“Nevertheless, despite the slower rate of increase, the cost of renting is still rising annually at nearly twice the speed of the average salary and many tenants will need to dedicate a growing portion of their disposable income to the cost of accommodation over the next year.”

The results of a recent Public Attitudes Housing Survey by residential landlord Grainger Plc suggest that in 15 years time there will be more people renting their home than buying it.

Commenting on the survey, Grainger suggested that people who would previously have bought their own home are now turning to renting because house prices have been kept artificially high by government and bank policies while high inflation, increased tax and wage freezes have dented household incomes.

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