Fastest rent rises on record
- Annual rent rises hit 5.6% across England and Wales – the fastest increase since records began in 2009
- Rents are now growing faster than house prices on an annual basis, for the first time since July 2013
- Rent rises decouple from the rate of inflation, with annual CPI standing at 0% in the same month of June
- Landlords targeted in Summer Budget could pass along the cost, causing rents to accelerate further
- Proportion of rent in arrears jumps to 8.7%, up from 7.6% in May 2015 and 7.8% in June last year
The average cost of renting a residential property in England and Wales has accelerated, to rise more quickly in June than in any month previously on record, according to the latest Buy-to-Let Index from Reeds Rains.
Rents across England and Wales reached a new record high at £789 in June, standing 1.4% higher than the £778 recorded in May and up 5.6% on an annual basis since June 2014.
This is despite consumer price inflation falling to 0.0% in June, and underscores a new trend since the beginning of 2015 by which rents have risen out of line with the rate of inflation.
This is also the first month since July 2013 where rents are rising more quickly than house prices for comparable properties, with this annual rate of house price growth standing at 4.5% over the twelve months ending June 2015.