Average rent rises to all-time high

| October 19, 2012 | 0 Comments
Average rent rises to all-time high

The average rent on a home in England and Wales increased to £741 a month in September, according to the latest buy-to-let index from LSL Property Services.

This was 1.1 per cent higher than the average rent of £734 in August and represents a new record high.

However the rate of increase has slowed, from 1.2 per cent in August.

On a year-on-year basis, rents in England and Wales increased by 3.2 per cent, compared with a 2.9 per cent annual increase in August.

David Newnes of LSL said: “Rents have risen consecutively for half a year as tenant demand strengthens on the back of a historically subdued mortgage market.”

Rents increased in seven regions in September, with London and the South East reporting the largest increases.

In London, rents increased by 1.7 per cent to a record £1,092 per month, while on an annual basis they have grown by 6.2 per cent.

Just three regions reported a fall in rents in September: the East of England, Yorkshire & the Humber and the West Midlands.

According to a report by Templeton LPA, a subsidiary of LSL, the number of tenants in severe arrears increased by 1.6 per cent in the third quarter.

There are now 99,000 tenants in arrears of two months or more.

There has also been a further increase in landlord possession claims, according to the government’s quarterly Court statistics.

In the second quarter of 2012 there were 25,422 landlord possession claims that led to a possession order being made, an 8 per cent increase year-on-year.

Counties with the biggest increases include Gloucestershire with a 29 per cent increase, West Sussex where they were up 20 per cent, and Hampshire up by 29 per cent.

The number of landlord possession claims has been increasing since 2010.

Tags: , Home repossessions,

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