18
Nov
Tenants' costs of renting a home 'up again'
The cost of renting a home in England and Wales has risen for
the ninth consecutive month but the rate of increase has slowed, a
survey has said.
LSL Property Services, which owns agencies such as Your Move and
Reeds Rains, said that the average rent climbed to £720 a
month in October.
However, the 0.2% monthly increase was the smallest rise since
February.
Frustrated first-time buyers continuing to rent and a shortage
of rental property have led to rising costs.
Christmas slowdown
The picture on a regional basis shows that rental costs rose
sharpest in the south-east of England (up 1.5%) and the east of
England (up 0.8%) in October compared with September.
Over the last year, tenants in London have seen rents rise
faster than in any other region.
In October, rents fell by 1.4% in the north-east and south-west
of England, and dropped by 0.8% in Wales, compared with
September.
"The recent increases are likely to continue to level out in run
up to Christmas - traditionally a slower time for the market," said
David Newnes, of LSL.
"Nevertheless, despite the slower rate of increase, the cost of
renting is still rising annually at nearly twice the speed of the
average salary and many tenants will need to dedicate a growing
portion of their disposable income to the cost of accommodation
over the next year."
The pressure on tenants was also in evidence as 10.1% of all
rent was paid late or not at all in October, compared with 8.6% in
September. However, this was slightly lower than the 10.3% average
of the previous 12 months.
LSL is predicting that tenant arrears will increase in the next
12 months.