Updated: Sat, 23 Jun 2012 16:14:44 GMT | By pa.press.net

Competition pushes rents up again

Strong competition among tenants has caused rents to rise for the second month in a row, according to a study.


Rents rose at their highest annual rate in London during May, latest figures show

Rents rose at their highest annual rate in London during May, latest figures show

Strong competition among tenants has caused rents to rise for the second month in a row, according to a study.

The average rent rose by 0.4% in May to reach £712 a month, according to lettings network LSL Property Services, which owns chains Your Move and Reeds Rains.

The increase has returned rents to the level they were at in January, before a rush of first-time buyers to beat the deadline for a stamp duty concession in March caused activity in the rental market to slow down.

However, the study suggested that it is not just "involuntary renters" unable to raise a deposit to buy a house who have ramped up the competition in the rental sector, as many people are choosing to rent due to the uncertain economy.

The study said that with people still struggling to get on the property ladder and the flexibility offered by renting amid the uncertain economy, there are unlikely to be big declines in the rents any time soon.

The annual increase in rents has slowed down slightly across England and Wales, with rents 2.3% higher than they were a year ago, compared with 2.4% higher in April.

Rents rose at their highest annual rate in London, where at £1,038 a month they are at their highest amount recorded by the study and 4.2% higher than they were a year ago.

The study suggested rental demand in London is set to increase in the coming weeks as tenants bring forward house moves to try to avoid the disruption of the Olympics.

David Newnes, director of LSL Property Services, said: "The end of spring has brought with it renewed activity in the rental market, and rents have returned to the level seen before the impact of the stamp duty deadline rush by first-time buyers.

"The reality is that thousands of frustrated buyers are still financially trapped between a rock and a hard place. Historically high rents and rock-bottom savings rates are hampering attempts to save for the larger deposits banks now require - not to mention meeting the cost of the reinstated stamp duty tax. In turn, fewer tenants are able to leave the sector, and the strong tenant competition is pushing up rents as a result, making saving for a deposit harder still."

3Comments
22/06/2012 02:15
avatar

Are you a LANDLORD?

 

IF YOU LET OUT OR RENT A PROPERTY THEN YOU REQUIRE LANDLORD INSURANCE (for either buildings insurance or contents insurance)( TENANTS CAN BE WORKING OR NOT WORKING ie can be claiming Housing benefit ).


HOUSE INSURANCE - LANDLORD INSURANCE - BUY TO LET - CONTENTS - BUILDINGS 
 
FOR A FAST FREE QUOTE PLEASE CALL -  0208 587 1060 AND MENTION REF 30494 TO RECEIVE THE BEST PRICE AND COVER
 
 IF YOU LET A PROPERTY WITHOUT ADEQUATE INSURANCE; YOU MAY FIND YOURSELF NOT COVERED BY NORMAL RESIDENTIAL INSURANCE

What type of cover? BUILDINGS AND/OR CONTENTS
 
COVER IS WITH SOME OF THE BIGGEST NAMES FROM THE INSURANCE INDUSTRY INCLUDING:
 
AXA
ROYAL/SUN ALLIANCE
GROUPAMA
EQUITY RED STAR
ZURICH
STERLING
ALLIANZ and many more
 
FOR A FREE QUOTE PLEASE CALL -  0208 587 1060 AND MENTION REF 30494 TO RECEIVE THE BEST PRICE AND COVER
 
ALSO AVAILABLE IS AN OPTION TO PROTECT YOUR RENTAL INCOME - ASK ABOUT OUR RENT GUARANTEE
 
CALL 0208 587 1060 and just QUOTE 30494
 
 Thank you

avatar
there is no affordable home anymore. Years ago many people had low rents and these people started businesses and provided work for people, now when you are struggling and an honest family or person we see only the corrupt are getting houses and an income. But soon everything will change according to the bible.  The rich greedy people who want all the attention and the poor struggling people will also get due attention.  Human rights is meant to protect people from suffering, who sticks their fingers up to the law? shame on you but you will also be judged.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

latest money videos

10 reasons to make MSN UK your homepage (© Microsoft)

more on msn money

msn money poll

Would you like to receive offers from retailers – such as discount vouchers or sale previews - from your current account provider?

Thanks for being one of the first people to vote. Results will be available soon. Check for results

  1.  
    17 %
    Yes - I'd like to receive any offers that could save me money
    11 votes
  2.  
    6 %
    Yes - but only if they were tailored specifically to my spending habits
    4 votes
  3.  
    6 %
    No - I already know where to look for vouchers and discounts
    4 votes
  4. 71 %
    No - I don't want to be contacted by my bank about anything other than my account
    44 votes

Total Responses: 63
Not scientifically valid. Results are updated every minute.