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Rents rising at fastest rate on record as arrears jump
Rents are rising at their fastest rate on record – and arrears have jumped.
This morning, estate agency chains Your Move and Reeds Rains said that rents could accelerate further if landlords targeted in this month’s Budget pass costs on to tenants.
The firms, both part of LSL, said rents were up 5.6% in England and Wales compared with a year ago and are growing faster than house prices.
The proportion of rent in arrears jumped to 8.7% in June, up from 7.6% in May.
The firms put the average rent in England and Wales at £789 in June, up 1.4% since May.
In London, the average rent is also at a record high of £1,241, up 9.6% on a year ago.
The lowest rents are in the north-east at £516 a month, but nevertheless up 1.8% on a year ago.
Rents in all regions have risen on an annual basis, dropping on a monthly basis only in the south-west (by 1.3%) and south-east (by 0.2%).
Also reporting this morning, referencing firm HomeLet said rents on new tenancies are now £1,515 in London and £747 across the country but excluding London. The figures quoted cover the period for the three months to June.
Overall, says HomeLet, new rents in the UK are up 11.6% on last year.
The LSL and HomeLet reports follow this week’s Rightmove letting index which showed record tenant demand.
Rightmove said average asking price rents on new tenancies stand at an average of £761 outside London, and in London at £2,052.
While the three reports come up with different rental sums – particularly when looking at Rightmove’s rental price for London – all three comment on the same trend: upwards.
http://www.propertyindustryeye.com/rents-rising-at-fastest-rate-on-record-as-arrears-jump/
