Rents rise to average of £718

| July 20, 2012

The average cost of rent increased to £718 in June, just below the record high of £720 in autumn last year.

With mortgage lenders tightening their borrowing criteria and ongoing economic difficulties, demand for rented accommodation is outstripping supply, causing rents to soar.

Rents rise to average of £718

LSL Property Services’ monthly index recorded a 0.9 per cent increase in average rents in June, the third consecutive monthly increase.

Rents increased across the UK, with the exception of the South West of England.

Tenants in Wales suffered the biggest increase with rents increasing by 2 per cent compared with May, to reach £545 in June.

LSL director David Newnes said: “The sheer weight of tenant demand continues to push up rents across the country.

“The rental market tends to see a flurry of activity at this time of year, as tenants look to move before the onset of summer holidays, but this trend has been exacerbated – especially in London – by tenants moving with urgency to secure properties ahead of the disruption of the Olympics.”

Rents in London increased by 0.9 per cent on a monthly basis, to £1,047 and are now 4 per cent higher than they were in June 2011.

A survey of more than 2,000 people by SpareRoom.co.uk found that 40 per cent of people living in rental accommodation are unable to afford to save for a deposit to buy their own home.

Around one in seven of the people surveyed said that rent accounted for more than two thirds of their take-home pay.

Twenty per cent of those surveyed were unable to see a time when they would be in a position to buy their own property and 17 per cent said it would be more than a decade before they could afford to buy a home.

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