No respite for renters as rates rise again

House with coins

Private rents rose 0.6% month-on-month in July to a record high of £705 a month on average and taking annual rent inflation to 4.2%, according to LSL Property Services.

This is the sixth month in a row rent has gone up in England and Wales and renters are now paying £29 a month more than they were a year ago.

Geographically, rent in London has increased the fastest. In the capital, rents are now 7.1% higher than this time last year and renters pay on average £1,009 a month.

Meanwhile, the north-east of England saw a 5.5% increase and the East and West Midlands experienced a rise of 4.8%.

The only region not to have seen a rise is Wales, where rents have remained the same.

No let-up

Rising rents are making it harder for first-time buyers to save a deposit and get on the property ladder and LSL says it is now becoming more common for renters to borrow money from their parents to buy their first home.

David Newnes, spokesperson for LSL, says rents are on an upward trajectory, and it is unlikely that tenants will gain respite any time soon.

"Demand from thousands of frustrated buyers each month is underpinning buoyant competition for rental homes, enabling landlords to increase prices.

"The increasing cost of rental accommodation – alongside the soaring cost of living – is eroding first-time buyers' ability to save deposits. But first-time renters are also keenly feeling the pinch. As rents climb, so does the size of the average deposit a new renter must find," he adds.

 Buy-to-let Index

London £1,009 0.3% 7.1%
East of England £731 0.1% 0.7%
South West £637 1.2% 2.3%
Yorkshire and the
£525 -0.2% 1.4%
North West £569 -0.1% 3.5%
Wales £547 1.4% 0.0%
South East £718 1.7% 3.8%
North East £519 1.0% 5.5%
West Midlands £551 -0.6% 4.8%
East Midlands £548 1.4% 4.8%
England & Wales £705 0.6% 4.2%