Rent rise could be embarrassment for Cameron
Friday, 17 February 2012 10:59 AM
Private rents rose in January for the first time on record, according to LSL Property Services.
The "small, but significant" 0.1 per cent rise bucks the seasonal trend and could also be an embarrassment for the government.
Last month David Cameron said at prime minister's questions that rent levels had come down as a result of cuts in housing benefit.
When that claim was challenged the Labour opposition, housing minister Grant Shapps said in parliament that "I imagine that the prime minister was probably referring to recent surveys by LSL Property Services".
LSL's buy to let index shows that January saw the first monthly rise in three months, pushing the annual rate of rent inflation up from four per cent to 4.3 per cent. That was significant because there is normally a seasonal fall around Christmas.
In the year to January rents rose in all regions of England and Wales except the North East. London led the way with an increase of 6.3 per cent.
David Newnes, director of LSL Property Services said: "The rental market burst back into life unseasonably early in January, with tenants on the move trying to take advantage of what is usually a quieter period for the rental market.
"The depth of the underlying demand sustained a higher level of competition for rental property during the Christmas period, preventing more severe falls in rents than we’d normally see during the period.
"In January, activity has already moved up a gear in many parts of the UK, pushing rents up once more in a small, but significant rise."
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