Landlords experience further rent rises

Landlords see continued rise in rents, according to official figures.

According to new figures released by LSL Property Services, the average price for renting a property now stands at £676 a month.

Last month’s 0.5% rise represents the sixth consecutive month where average rents recorded an increase.

This is 2.3% higher than the same time the year before but only £12 than they were at their peak in 2008.

LSL Property Services claim that the rise has been due to very high demand for property lets which is exceeding property supplies. As a result, the expectancy that rents will drop at sometime in the near future is extremely unlikely. In fact, it is probable that they will further increase.

Commercial director of LSL Property Services, David Brown said:

“We don’t expect rents to fall away any time soon. With inflation well above the Monetary Policy Committee's target, interest rates can only go one way - north.”

“When they rise, many landlords will face increased monthly mortgage repayments - and many will try to raise their rents to cover the difference.”

And there is more good news forlandlords. The research also found that rental arrears were at their lowest level since figures were first complied in 2008. The proportion of rental agreements in arrears fell to just 9.2%, down from 11.2%.