UK rents rise for fourth consecutive month
17th Aug 2012
UK rents rose for the fourth month in a row in July and have now reached a record high, according to the latest Buy to Let Index.
The data shows that the average rent in England and Wales in July rose by one per cent to £725 per month, surpassing the previous high of £720 per month in October 2011.
The pace of annual rental inflation has also increased, climbing from 2.4 per cent in June to 2.8 per cent in July.
On a monthly basis, rents rose in eight out of ten regions in England and Wales, with the south-east climbing fastest, as it increased by 2.2 per cent.
The West Midlands saw the next largest increase, rising by 1.8 per cent, while rents dropped by 0.4 per cent in both the south-west and the east of England.
Furthermore, rents in London hit a new high for the third consecutive month, following a monthly one per cent rise to £1,057.
Rents fell on an annual basis in just two regions, dropping by 1.2 per cent in the south-west and by 0.4 per cent in the East Midlands.
UK rental property expert David Newnes observed that demand for rented accommodation is only likely to go one way in the long term, providing further upwards momentum for rents.
"The market is also entering its summer peak, as recent graduates and those with new jobs begin to look for new accommodation. With more tenants on the move, alongside long-term underlying demand, fierce competition for properties is enabling landlords to increase rental prices to new highs," he added.
Posted by Staff Writer: Frances McDonald
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