Rents rise at fastest rate since 2010 to hit all-time record high
- Residential rents have grown 4.6% year-on-year – the fastest rate of increase since November 2010
- Average rent across England and Wales hits record high of £774 in April – or a record £1,204 for London
- East of England sees rents up 12.5% in 12 months, faster than new peak of 7.8% annual rises in London
- Levels of late rent improve once again after previous spike – proportion of rent in arrears falls to 7.0%
- Landlords see total returns drop to 8.9% on back of slower capital growth, but yields steady at 5.1%
Rents across England and Wales jumped 4.6% compared to April last year, according to the latest Buy-to-Let Index from Reeds Rains.
This represents the fastest annual rise since November 2010.
Rents are also at a new all-time record in absolute terms. As of April, the average rent across England and Wales stands at £774 – the most expensive rental prices on record.
On a monthly basis, rents grew by 0.8% between March to April, the fastest month-on-month growth since September.
Adrian Gill, director of estate agents Reeds Rains, comments: “Rents are going skywards and still accelerating. That momentum is fueled by a fundamental shortage of housing and given oxygen by renewed wage growth.
“Economic progress has brought about a slow but steady stream of household earnings and employment: the most basic requirements for rent rises. Placed in the context of the UK’s pressure-cooker housing shortage, these modest improvements have driven rents up at record speed.
“This should be a loud and clear signal to the authorities that home building is more than just manifesto-fodder. People have more money in their pockets, but we’re in danger of seeing that recovery squandered away on a housing shortage. With the surprise of a relatively strong majority government, there has never been a better time to take the bull by the horns and fix this housing crisis at the root. When you hear a kettle whistle, you take it off the hob.”