Strongest April on record drives rents to all time high

Published 24th May 2011

Rents reached their previous peak high in April after a spring surge in demand, according to the latest Buy-to-Let Index from LSL Property Services plc, owners of Your Move and Reeds Rains:

* Rents rise by 0.8% to £692 in April as annual rent inflation increased to 4.4%

* Tenant arrears rise with 11.8% of all UK rent in arrears as bank holiday weekends affect payment

* Total annual returns remain steady at 2.1% as rent rises are balanced by dipping property prices in last three months

In April, the average rent in England and Wales rose by 0.8% to £692 per month, matching the record high reached in November 2010. The growth means that rents are now 4.4% higher than a year ago, the highest annual inflation since November 2010.

The average yield reached 5.1% in April as rents increased at a faster rate than rental property prices.

David Newnes, estate agency managing director of LSL Property Services, comments: "The rental market is heating up as thousands of would-be tenants have taken advantage of the weather and long weekends to hunt for new rental homes. Even a slightly stronger supply of property has failed to cool rental inflation as landlords take advantage of the growing number of mortgage products available.

Competition is fierce and tenants are paying a premium to secure properties. The average landlord is charging nearly £30 more a month than a year ago, and the rate of increase is unlikely to tail off as lending to first-time buyers remains subdued and demand for rental homes is stronger than ever."

Source: ' UK Property News '

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