Rents hit fresh record despite sharp slowdown in annual rises
- New all-time record high of £768 per month for average residential rents across England & Wales
- Comes despite slower rent rises of just 1.5% in year to September, down from 2.4% in year to August
- Tenant finances improve with only 7.2% of all rent in arrears, falling from 8.5% in September last year
- House price rises take landlords’ gross returns to record 13.4% before mortgage or maintenance costs.
Rents have edged to a new all-time record, at a slowing annual rate of just 1.5%, according to the latest Buy-to-Let Index from the UK’s largest lettings agent networks, Your Move and Reeds Rains.
Residential rents across England and Wales now average £768 per month, or £10 higher than in September 2013.
On a monthly basis September’s average rents are 0.8% higher than in August, representing a rise of £7 in absolute terms since the previous month.
Annual growth has slowed dramatically since August, when rents were 2.4% higher than a year before – rising just 1.5% over the twelve months ending September 2014.
David Newnes, director of estate agent Reeds Rains, comments: “Historically rent rises have broadly tracked inflation. And as the wider cost of living grows ever more slowly, so too has the cost of renting a home.
That said, autumn is always a busy period for the lettings industry, and this has been no exception. Looking ahead, it is likely that rents in most parts of the UK will have now reached their seasonal peak – so as the market cools along with the autumn weather there may be opportunities for some tenants to pick up a favourable deal."