Home.co.uk
Home.co.uk

News: UK rents rise to record levels

Mon, 21 Oct 13


The cost of renting rose by an average of 2.1 per cent in September compared with September 2012 to reach £757 a month, according to the latest survey from LSL Property Services.

Average rental costs went up by 1.8 per cent compared to August. LSL said that the higher rents are due to increased demand from tenants. Despite the introduction of the Help to Buy scheme which allows first-time buyers to get a mortgage with a deposit of just five per cent, that many potential homeowners are still trapped in the rental sector.

Critics argue that the scheme will push up house prices, potentially creating a house price bubble and pricing out people that the scheme was designed to help. David Newnes, director of LSL said: "Higher rents in almost every region show that, despite government schemes, buying a first home is still a difficult aspiration.

"This is not only down to low salary growth, but also a general shortage of supply - which is the underlying reason why homes are getting more expensive. The long-term trend to renting therefore looks unlikely to change significantly in the near future."

The increase in rents across the UK was driven by a 3.3 per cent increase in the south-east.


See also: LSL Rental Index

Back to: News Index