Rents have increased for a third consecutive month, with an average rent in England and Wales rising by 0.9%, to £718 per month.
Wales has experienced the largest rise in rents, with rents increasing by 2%, closely followed by the West Midlands and North West, where rents rose by 1.7%. The rental market in London is at an all time high for the second month in a row, rising by 0.9% to £1,047 per month. Tenants are paying an extra £41 per month compared to June 2011. The South East of England also experienced the second highest rental inflation, where rents have climbed by 3.6% in past twelve months.
The increase in tenant demand, has pushed up rents across the whole of the UK. Whilst lending criteria remains so tight, the number of mortgages for those first-time buyers who have not managed to obtain substantial deposits, is still along way off from the pre-credit crunch days. As first-time buyers are also having to pay higher rents each month, and interest rates at an all time low this makes it even harder for them to put aside money to sve up for a deposit, making it for most an impossible task. All of these factors, the competition for limited accommodation available in the rental market is pushing up rents.