27 May

Rents see strong annual growth

Rents see strong annual growth

Residential rents across England and Wales have increased by 4.6 per cent over the past 12 months - the fastest annual increase since November 2010.

The figures from Your Move and Reeds Rains show rents are now at a record-high in absolute terms, with the average rent now £774 per month.

In terms of monthly increases, rents rose by 0.8 per cent between March and April - the largest month on month rise since September.

Adrian Gill, director of estate agents Reeds Rains and Your Move, believes the lack of homes and strong wage growth is driving the rental market, although there needs to be an increase in housing stock available.

"Economic progress has brought about a slow but steady stream of household earnings and employment, the most basic requirements for rent rises and these modest improvements have driven rents up at record speed. People have more money in their pockets, but we're in danger of seeing that recovery squandered away on a housing shortage," explained Mr Gill.

Regionally, the East of England has seen the strongest increases in rent prices, with a rise of 12.5 per cent compared to April 2014.

London has also seen a 7.8 per cent increase over the past 12 months as well as a five per cent increase in March and 4.9 per cent in February.

"The East of England has witnessed rapid growth in property purchase prices, and rental prices have taken a similar course, albeit even faster. Away from the East, London is the real figurehead for the housing dilemma. Rent rises tend to follow wage-growth, so it’s no surprise to see this clustered around the South," added Mr Gill.

However, the picture was less positive in Wales, with rents down 2.8 per cent compared to April 2014. Similarly, rents were 0.8 per cent lower in the North East and fell 0.2 per cent in the East Midlands.
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