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Another month, another record high for rents

Friday, 16 September 2011 3:47 PM

Rents rose at their fastest rate in a year in August to reach a new record high, according to the latest buy-to-let index from LSL Property Services.

Following seven consecutive months of growth, rents rose 1.2 per cent in August alone and now average £713 per month.

That was good news for landlords, with total annual returns increasing to 2.6 per cent as capital losses diminish.

But tenants are felling the pinch from rising rents and spending over the holiday season and rent arrears grew by 19.5 per cent.

Rents rose fastest in August in London and the South West and only fell in the East and West Midlands.

After a 6.6 per cent rise over the last 12 months, or £63 a month, London now has an average rent of £1,025 per month.

David Newnes, estate agency managing director of LSL Property Services, said: “We are in the thick of the busiest time of year for the rental market, and red-hot demand for properties is driving rents up at their fastest monthly pace in the last 12 months. Recent graduates moving for their first jobs have further exaggerated the long-term and growing demand from frustrated buyers.”

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