UK rents continue to rise
Rents in England and Wales rose for the ninth consecutive in October, according to a report from LSL Property Services. The average monthly rent is now £720.
But the rate at which rents are rising has slowed, from September to October the cost of renting a home rose 0.2% - the smallest monthly rise since February.
The steady increase in rents is also leading to a rise in the number of tenants falling behind on payments. In October 10.1% of all rent paid was either late or not paid at all, compared with 8.6% in September, LSL is predicting this trend will continue into the new year.
Rising rents are a result of an increase in the number of first-time buyers deciding to rent rather than buy pushing up demand for rental housing.
Rents vary across the country with London still the most expensive region. The average rent in the capital is £1,030 - 5.7% higher than a year ago.
Unsurprisingly rents were highest in the south east of England, with a 1.5% monthly rise, with the east of England coming in second with a 0.8% rise. At the other end of the spectrum rents in the north east fell by 1.4% drop and in Wales there was a 0.8% fall.
"Despite the slower rate of increase, the cost of renting is still rising annually at nearly twice the speed of the average salary and many tenants will need to dedicate a growing portion of their disposable income to the cost of accommodation over the next year," says David Newnes spokesperson for LSL Property Services.