The May 2012 Buy to Let Index from LSL Property Services in partnership with The Wriglesworth Consultancy has been released today, providing a measure of the average rental prices in England and Wales for May 2012.
- Rents rose for a second consecutive month, increasing by 0.4% on monthly basis
- London rents reach record high of £1,038 pcm, increasing by 0.6% in May
- Tenant arrears fell back from April, with 8.9% of all rent late or unpaid
David Newnes, director of LSL Property Services comments as follows in the latest Buy to Let Index Report from LSL Property Services and The Wrigleswoth Consultancy published 22nd June 2012.
“The end of spring has brought with it renewed activity in the rental market, and rents have returned to the level seen before the impact of the stamp duty deadline rush by first-time buyers. The reality is that thousands of frustrated buyers are still financially trapped between a rock and a hard place. Historically high rents and rock-bottom savings rates are hampering attempts to save for the larger deposits banks now require – not to mention meeting the cost of the reinstated stamp duty tax. In turn, fewer tenants are able to leave the sector, and the strong tenant competition is pushing up rents as a result, making saving for a deposit harder still.
“However, it’s not just involuntary renters that are adding to demand. Given the current concerns over the economy and labour market, the flexibility of renting is proving attractive for those adopting a wait-and-see approach to house purchase. Given this appetite for rental accommodation, rents are unlikely to see sustained declines any time soon.”