Landlords receive higher rents as demand for homes rises
Landlords are receiving an average of £946 per calendar month for newly-let properties.
The research shows that the average rent for properties let to new tenants in England has jumped 3.8% in the past 12 months.
Annual growth in rent for new let properties was recorded in all regions except central London. The South West saw an increase of 7% – the highest growth year on year, while landlords in the Midlands increased the rents the charge by 6.3%.
While rents in Greater London are increasing, the rate of growth here has halved i since the start of the year.
In August, the month on month average increase for England hit 2.5%.
Overall, 45% of tenants renewing their tenancies had rent increases in August, the highest since the index began and in London and south-east England more than half of tenants renewing faced higher rents, according to the analysis.
The report points out that rising rents throughout 2015 have been driven by a lack of homes available to rent. The total number of homes advertised to let was down 8% in August compared with August 2014, while the number of registered applicants was up 4%.
There are now nine tenants registered for every home available to rent, up from 7.5 in August last year.
Tenants choosing to renew their agreements are more likely to see their rent increase. However, they are still better off compared with those moving home. The average increase in rent of 2.5% for a renewing tenancy is still less than the annual increase in rent for newly let homes, the report points out.
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