Rents have risen in real terms for the first time in fourteen months, according to the latest Buy-to-Let Index from LSL Property Services plc.
The average residential rent across England and Wales is now 2.0% higher than in July 2013, currently standing at £753 per month. This is the same absolute level as in November 2013, and is up from an average of £738 per month in July 2013.
Rents are just 0.1% higher than a year ago after consumer price inflation of 1.9% – the first real-terms increase since September.
David Brown, commercial director of LSL Property Services, comments: “As the summer turns to early autumn, the rental market is approaching its busiest period – yet rent rises remain modest.
Tenants looking to rent a new property this month still need to budget the same as they would have in November. At a time when the UK is facing a serious shortage of homes, and with purchase prices rising steadily, that is an immense achievement for the private rented sector.
Rents have tracked inflation for many years – and as of July remain down 0.2% in real terms since the start of 2010. This is testament to serious improvements in the supply of new homes to let, thanks to investment by landlords. If that investment keeps flowing, and the right incentives for new landlords remain, this positive trend should continue.”
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