Rent increases 'slowed down in 2013'

by Sarah Ashcroft

Landlords around the UK enjoyed a 1.5 per cent hike in the rents they received from tenants last year, although this was still some way below expectations.

The latest figures from LSL Property Services show that the 1.5 per cent rent increase was just half of the three per cent rise recorded in 2012, with the average rent in England and Wales standing at £745 per month last year.

A seasonal decline was also seen between November and December, when rents in the countries reduced by one per cent.

With increases appearing to be at a manageable level, more people are showing an interest in renting a home and this sparked a 7.7 per cent rise in the number of new tenancies agreed in December in comparison with the same month a year earlier.

David Newnes, director of LSL Property Services, said: "Households have suffered from the most painful recession in living memory, but it's clear we're now coming out the other side. By investing heavily in the supply of more homes to rent landlords have played a pivotal role."

It's also good news for tenants, who have a healthy supply of rental property to choose from in most parts of England and Wales and are now finding rents are not increasing at such a rapid pace.

Between November and December, the sharpest decline was experienced in the south-east, where rents dropped by two per cent. There was also a fall of 1.9 per cent in both London and Wales over the month in question.

But when the whole year was considered, London was actually the most lucrative destinations for landlords, with rents rising by four per cent. This meant a hike of £44 on the average person's monthly payment.

A small number of regions actually saw annual falls in rental values, with these including the east of England (-4.4 per cent), the West Midlands (-2.1 per cent) and Yorkshire and the Humber (-2.1 per cent).

Published on: January 20, 2014

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Rent Increase Notice - Section 13 Notice

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Solicitor-approved rent increase notice for landlords to raise rent. Also known as a Section 13 Notice.

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