Rent hits record high as demand dwarfs supply

Rental continues to grow

Rental continues to grow

The average amount of rent paid by tenants in England and Wales has now matched the previous record high, as it hit £692 a month.

A survey by LSL Property Services revealed that rents had increased by 0.8% compared with the previous month, and was now 4.4% more expensive than the same point last year.

Landlords are now charging an average of £30 a month more than they were last year, with London and the south east seeing the largest increases.

The extra bank holidays in April saw an influx of tenants on the lookout for a new home to rent, with the increase in demand pushing up the amount of rent a landlord was able to charge.

It’s not all easy work for landlords though, as they face a decline in their own property value, and the number of tenants not paying their rent on time grew.

11.8% of all UK rent was unpaid, or paid late in April, as the bank holiday played havoc with bank payments and standing orders.

LSL managing director David Newnes explained, “The final bank holiday of the month delayed many rental payments, but on top of this, thousands of tenants took advantage of the opportunity and booked holidays, which has impacted on the timely payment of rent.”

“Nevertheless, despite the short-term factors, landlords need to remain especially vigilant over the medium-term. We are yet to see the true picture emerge from public sector spending cuts, and changing employment situations will hamper many tenants’ ability to meet their monthly rent cheque on time.”

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