Figures released by a letting agency showed that the cost of renting a property from a private landlord went up by half a per cent last month, pushing up the average UK monthly rent to £710. LSL Property Services’ research showed that this was the first recorded increase for three months and now means that rents are 2.4% higher than twelve months ago.
As expected, rents are highest in London where they have increased by 4.5% in the last year to an average of £1,032 each month, a figure that puts London rents almost 50% higher than those in the rest of the UK. The biggest reduction in rent was in Wales where they went down by 1.3%. The data also showed that the level of arrears among private tenants has taken a turn for the worst last month, with nearly 10% of all rent unpaid at the end of the month. The total amount of unpaid rent in April amounted to £306million, a 14% increase from £267million in March.
April’s rise has shown that private landlords cannot afford to take their eye off the ball and they are being urged to make sure they have up to date landlord insurance. Despite several monthly dips in the past year, rents are starting to rising at a faster rate than wages are increasing. With a faltering economy, and further job losses expected to come, a large number of rented households are going to see their finances stretched.
David Newnes, director of LSL Property Services, said “After absorbing the impact of the stamp-duty deadline on tenant demand, the rental market began to heat up in April. As fewer tenants rushed to leave the sector, competition for rental accommodation intensified, and rents rose correspondingly. Many tenants’ finances suffered in April as a result of seasonal spending in over the Easter period, not to mention the increasing cost of renting. In spite of this deterioration, tenant arrears have performed above expectations in recent months.”