LSL Property Services have reported that for the month of August, the average rent charge in England and Wales went up by 1.2%, the fastest rate of increase for the year so far.
The average rent for the UK is now £713 per calendar month, according to LSL Property Services, who also own Your Move and Reeds Rains. Their recent survey has also reported that the average rent charges for the regions of Wales and the South East of England featured the biggest rises for the whole of England and Wales.
Furthermore, the total amount of outstanding rent owed by tenants to their landlords also rose for the first time since April. However, experts point out that there is often a rise in arrears at this time of year, as holiday spending usually has an impact on family finances at the end of the summer.
David Newnes, the managing direct for LSL Property services, pointed out that this is the busiest time of year for estate agents and the rental market. He indicated that there is currently a high demand for rental properties and this is driving rent charges up.
Mr Newnes indicated that over the last two years, average rent charges have risen by over £50 per month and that he also expects there to further rises over the next few months. He also suggested that the demand for new homes has been impacted by the number of potential first time home buyers who cannot get a mortgage and also the number of recent graduates who are moving house in order to find work.
Many people are currently finding it difficult to get onto the property ladder. Some have suggested that there are mixed messages about whether it is a good time to buy or not. Even those who have raised the money for a deposit are facing a tough choice about whether to buy or wait. There are still a great many concerns about whether or not property value will fall again.
However, whilst rent may currently be affordable, many people feel it is not an economical choice.
The figures from the LSL Property Services survey showed that over the last year, people in London have faced the biggest rises in rent charges for the whole of England and Wales. In total the average rent charge in London has increased by 6.6% since 2010. The West Midlands area saw the second highest increase in rent charges, which went up by 6% and the North East of England was third, where average rents increased by 4.3%.
The only area in England which saw a fall in the average rent charge was the region of Yorkshire and Humber where rents fell by an average of 0.5%.
In July, the total amount of arrears was at 9% of UK rent unpaid or overdue. This figure rose to 10.7% by the end of August – the first month it has risen since April.