Rents hit record highs as landlords good run continues

The continuing upsurge in demand for rented accommodation has seen rents rocket to their highest levels this summer, and the good news for those with an interest in landlord insurance is that the good times look set to roll for some months yet. The latest figures suggest that the average monthly rent of a property in England and Wales is now almost £720 and those in London almost £600 higher than that.

Demand gets higher as tenures last longer

According to figures released by letting agents LSL Property Services this week, last month showed increases in the average rents achieved by landlords in every region of England and Wales. It is the first time increases across the board have occurred in the same month and can only spell out continued success for property investors. Six regions recorded record highs and residential landlords across the UK are still reporting levels of prospective tenants making enquiries on their properties. Further proof of the lack of necessity in empty home insurance comes from the Association of Residential Letting Agents (ARLA) who say their members are now reporting an average tenure length of over 18 months, once again a record and indicative of a renting population wary about leaving their present abode because of the demand for housing.

Demands on private sector will grow

With no change in the banks attitude towards deposit demands on first time buyers, there seems little likelihood that landlords will be facing stiff opposition when they start bidding on properties to extend their portfolios. Of course the present Government have reasserted their encouragement for Right to Buy schemes for council house dwellers, although there seems little appetite from residents. There is also the initiative involving the building of thousands of homes around the UK in the next ten years. This is about to start, with Government help for builders and housing associations that come up with credible plans. The scheme is the key to Whitehall’s long term housing plan but in truth these two projects will still leave the growing population of the UK in desperate need of a healthy private letting sector. There is no doubt that landlords with their finger on the pulse of the market know their business is in the rudest of health and should remain so for a long time yet.