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Buy to Let – rental increases

March 28th 2014
By: Melanie Hollidge

Recent figures from LSL Property Services show that the average rent has increased 1.6% year on year across England and Wales.  The current average monthly rent is now £743.  It’s the fastest annual increase since last November, comparing favourably with a 1.4% year on year rise in January 2014.
 
The first month on month increase in residential rents since October last year, has been seen between January and February this year – rents have increased by 0.1%.
 
David Brown, commercial director of LSL Property Services, said: “Property to rent remains in high demand. Despite great improvements in the prospects of many first-time buyers, there are still millions of households who rely on a healthy private rented sector for their homes.”
 
“February’s annual increase remains below the rate of wider inflation. However, this latest uptick and the high level of demand in the lettings market emphasise the importance of ongoing investment. Landlords have invested heavily in expanding their portfolios and need to continue to do so to keep pace with demand from tenants.”
 
When looking at regions, London rents have increased annually by 3.3%.  The South West has seen the most dramatic rise – an increase of 4.7% from February 2013.
 
“Across the UK there has always been a huge level of variation between different local markets. But in the last year some of these differences have become more apparent as the property market has witnessed such a rapid shake-up and improvement.” said Mr Brown.