30 Mar

Property rents continue to rise

Property rents continue to rise

Rents across England and Wales have increased by their fastest annual rate since May 2013, according to the latest figures.

Data from estate agents Your Move and Reeds Rains shows the average rent for residential properties risen by 3.1 per cent over the past 12 months. This means in February the average rent reached £766 per month.

The strongest increase in annual rent prices was seen in the East of England, where costs for tenants have rose  risen by 10.2 per cent over the past year. Prices in the West Midlands and the South West remained relatively stable, with small falls reported in the North West and North East regions.

Previous months had shown a slowing of rent increases, with falls record in December and November of last year.  However, it would appear the market remains favourable for many buy-to-let landlords looking to enjoy strong returns on their investments.

Although, there are concerns that the financial circumstances of tenants could be worsening. According to figures, 7.6 per cent of all rent was in arrears in February 2015, compared to 6.9 per cent at the same point 12 months ago.

Adrian Gill, director of Reeds Rains and Your Move, stressed that more needs to be done to increase the stock of housing across England and Wales to help ensure the situation does not worsen in the future.

"More homes are needed to house an ever growing population. The supply simply isn’t there," explained Mr Gill.

He added: "The result is that landlords are catering to those who can’t afford to buy as well as those who choose renting for the flexibility it offers them such as workers moving into new jobs, or people wanting to get a feel for an area before committing to property ownership and setting down roots."ADNFCR-1222-ID-801781669-ADNFCR

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