Private rents rose across Britain by 1% in the 12 months to June this year, the Office for National Statistics has reported.
However, agreed rents for new tenancies have shot up by 6.3% in the last year, according to another new report, published this morning.
The ONS report – which rather alarmingly it does not itself seem to believe, calling it “an experimental statistic” which should be treated with caution – says rents went up most in London at 1.4%.
Rents for the country excluding London went up by 0.7%, reflecting the large amount of private rented stock in the capital. In Wales, rents crept up by just 0.2%.
The ONS report contains no actual rent prices.
However, its percentage figures are not far off the latest ones issued by LSL, which put annual rent rises at 1.4% and actual average rents at £747 per month.
LSL reports across both new and existing rents, but this morning referencing firm Homelet reported on new rents only.
It said that in London, these now stand at £1,412, and £694 across the rest of the UK – making a UK average of £862 per month, compared with £811 for new tenancies a year ago.
In Greater London, rents on new tenancies are up 11.2% on this time a year ago.
The firm bases its data on referencing 350,000 prospective tenants a year.
Low mortgage rates are encouraging investment into buy-to-let property and for those people leaving the family home moving into a rented property doesn’t require a huge deposit and long-term commitments to a mortgage.
Renting gives flexibility that owning your own home does not give and as long as you pay your rent on time you don’t need to worry about odd-jobs around the house, as your landlord is obliged to fix things that break through wear and tear.
Our Letting Agent clients are generally oversubscribed with Applicants and stock is the issue so this is a further boost to the buy-to-let market.
Richard Murray – Eurolink
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